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harkovskaia [24]
3 years ago
6

When no-par stock is issued, the entire proceeds are credited to Capital Stock and this amount is viewed as legal capital not su

bject to withdrawal. True or False True False
Business
1 answer:
zhannawk [14.2K]3 years ago
6 0

Answer:

True

Explanation:

If there is no-par stock is issued, the entire proceeds are credited to Capital Stock. Also, the amount we get in for this capital amount can not be legally withdrawn for any purposes. It also reduces any responsibility faced from payable by the issuance of no face value. The journal entry will be as follows:

Cash Debit

Common stock Credit

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You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $800 per month in a stoc
Svetach [21]

Answer:

Ans. You withdraw each month from your account, for 300 months (25 years) $1,118.03 taking into account the expected inflation rate.

Explanation:

Hi, ok, first, we need to find out how much money will you have after saving in both accounts for 30 years, for that, we need to use the following equation and solve for FV (future value).

FV=\frac{A((1+r)^{n}-1) }{r}

Where, A is the amount saved in the account, r is the interest rate that it pays, n are the yearly equal payments, in our case 30. Everything should look like this in the case of the stock account.

FV=\frac{800((1+0.11)^{30}-1) }{0.11} = 159,216.70

In the case of the bond account it should look like this.

FV=\frac{400((1+0.07)^{30}-1) }{0.07} =  37,784.31

This means that after 30 years you will have $197,001.02

Now, we need to find the amount of monthly withdraw that you can make given the money saved, but in order to take into account the time value of money, we need to use the real rate of return and not the nominal rate of return (9%, when you gather all your money and send it to another acoount). Therefore, we have to find out the real rate of return, like this.

Real(r)=\frac{[1+Nominal(r)]}{[1+Inflation(r)]} -1=\frac{(1+0.09)}{(1+0.04)} -1=0.0481

This is 4.81% effective annual rate, but we need this rate to be effective monthly, that is:

r(monthly)=(1+r(annual))^{\frac{1}{12} } -1=(1+0.0481)^{\frac{1}{12} } -1=0.0039

That is 0.39% effective monthly, and we have to use the following equation with n=300 months, r=0.0039, PV= $197,001.02 and solve for A.

PV=\frac{A((1+r)^{n} -1)}{r(1+r)^{n} } =\frac{A(2.234662443)}{0.012682296} =A(176.2032975)

197,001.02=A(176.2032975)

A=1,118.03

Best of luck

7 0
3 years ago
A country's currency is backed by a gold standard. However, gold production has declined and will not recover. Which action woul
lubasha [3.4K]
3 is the correct answer
4 0
2 years ago
Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and variable costing. C
Morgarella [4.7K]

Answer:Please refer to the explanation section

Explanation:

The question is incomplete, amounts of production costs like Direct Material, direct labour and Variable/Fixed manufacturing overheard were not given, we will explain the absorption cost and variable cost in detail so that the student would be able to calculate absorption cost and variable cost balances easier.

Absorption costing Method

Total Manufacturing costs are allocated to Finished goods Product. Absorption Costing method assigns or allocates the total cost of Manufacturing or total production costs to units of Finished Goods produced. each unit of finished goods thus represents total costs of production per unit or Total Manufacturing/Production cost is the Balance of Finished Goods.

Total Manufacturing/Production cost = direct labor cost + direct material cost + variable and fixed Manufacturing overheads cost.

Finished Goods Balance = Total Manufacturing/Production cost

A unit of Finished Goods = Total Manufacturing costs/units produced

Variable costing method

Variable costing method fixed manufacturing costs are treated as an expense,  Variable Manufacturing costs are the only allocated to inventory. The value or Balance of inventory consist of Variable Manufacturing cost like Direct labor, Direct Material and Variable Manufacturing costs. Finished Goods Balance equals total Variable Manufacturing cost

5 0
3 years ago
Emily is making a chart to analyze an argument in a text.
Aneli [31]

Answer:

you said you would be able and would be interested to see if you can help us with the math and how you would do this is the Joule and what is its own words of

6 0
2 years ago
The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufactur
kirill115 [55]

Answer:

Cost of finished goods on hand = $78,000

Explanation:

<em>Job costing is appropriate where goods or contracts are done to meet customers specific and unique requirements. Each customer's job is different from the other.</em>

To determine cost per unit cost job, we use the formula :

<em>= (D.material cost + Direct labour cost + Overhead)/ No of units</em>

We can  work out the cost per unit for Job No; 402 as follows:

Step 1

<em>Calculate the closing inventory</em>

Closing inventory = Opening inventory + Production - Sales

= 0 + 5000 - 4000 = 1000

Step 2

<em>Calculate the the cost per unit</em>

= $(120,000 + 180,000 + 90,000)/ 5000 units

= $78 per unit

Step 3

<em>Value the closing inventory </em>

= unit cost × inventory units

= $78 × 1,000

= $78,000

Cost of finished goods on hand = $78,000

4 0
3 years ago
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