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cupoosta [38]
3 years ago
11

Maso Company recorded journal entries for the issuance of common stock for $200,000, the payment of $65,000 on accounts payable,

and the payment of salaries expense of $105,000. What net effect do these entries have on stockholders’ equity?
A, increase of $200,000
B, Increase of $135,000
C, Increase of $95,000
D, Increase of $30,000
Business
1 answer:
cricket20 [7]3 years ago
7 0

Answer:

Increase of $95,000

Explanation:

Stockholder equity: It records the issue of shares, retained earnings, and deduct the dividend amount if declared.

The expenses which are related to the business is directly or indirectly affect the stockholder equity.

So, the net effect is shown below:

Issuance of common stock = $200,000

Less - Payment of salaries expense = $105,000

So, the net effect would be equal to

= $200,000 - $105,000

= $95,000

The accounts payable does not affect stockholder equity. So, it would not be considered.

This $95,000 would increase stockholder equity.

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Albright Company purchased as a long-term investment $500,000 of Benton Corporation 10-year, 9% bonds. Required: Present entries
katen-ka-za [31]

Answer:

March 1, purchased securities from Benton Corporation:

Dr Investment in securities 500,000

    Cr Cash 500,000

May 1, sold half of securities plus accrued interest:

Dr Cash 248,550

Dr Loss on investment in securities 5,000

Dr Brokerage fees 200

    Cr Investment in securities 250,000

    Cr Interest revenue 3,750

Securities were sold at 98 or $250,000 x 98% = $245,000, which means that the company lost $5,000 with that investment.

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3 years ago
Best birdies produces ornate birdcages. the company's average cost per unit is $18.00 when it produces 2,200 birdcages. if $5,50
marshall27 [118]
To predict the total costs for 3,000 birdcages:

Use the average cost per unit of $18.00 and multiply it by 3,000.
($18)(3,000)= $54,000
$54,000 
is the predicted total costs of 3,000 birdcages. 
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3 years ago
Google this for me: How to handle analysis paralysis?
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6 0
3 years ago
Read 2 more answers
How will an increase in labor productivity affect equilibrium in the labor market?
IRINA_888 [86]

We can actually infer here that an increase in labor productivity will affect equilibrium in the labor market in the following way: The demand for labor will increase and the equilibrium wage and quantity of labour will increase.

<h3>What is equilibrium?</h3>

Equilibrium refers to the state whereby opposing things are balanced in order to achieve a desired outcome.

If the labor productivity is increased, it will definitely affect equilibrium in the labor market in such a way that the demand of labor will increase.

Learn more about equilibrium on brainly.com/question/517289

#SPJ11

8 0
2 years ago
A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $50
Artyom0805 [142]

Answer:

a. $(8000)

b. Company should choose alternative 1 and make bottles.

Explanation:

Particulars               Make Bottles            Buy Bottles  Differential

                                Alternative 1             Alternative 2

Purchase Price                  0                       $37                               $(37)

Freight Charges                 0                       $4                                $(4)

Variable cost                    $33                                                          $33

Fixed Cost                        $17                     $17                                  0

Cost per unit                    $50                    $58                              $(8)

Income / (Loss)                 $50,000            $58,000                      $(8,000)

b. The company should choose alternative 1 and make bottles. The buying of bottles will cost company loss of $8,000.

7 0
3 years ago
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