Answer:
Wendy was right because par value stock has not impact on the market price of the stock.
Explanation:
Par Value:
The par value of stock is the value, that is generally a very small amount, which is stated on the stock certificates of a company. It has no connection with the market price of the stock.
- Some states ask the company to assign a par value for stock so that's why the companies minimum par value to the stock.
- If some companies don't assign par value to their stock then its means that their shares have no-par value.
- In our case, Wendy was right due to the fact that par values has no concern with the market price of the stock.
Answer:
The adjusting entry is:
Debit Depreciation Expense - Equipment $1,800
Credit Accumulated Depreciation - Equipment $1,800
To record depreciation expense.
Explanation:
The adjusting journal entry records the depreciation expense for the year and adds the expense to the accumulated depreciation account. The accumulated depreciation account is a contra account to the Equipment account. The purpose that this contra account serves is to keep the Equipment account at its cost value while the gradual write-off of its value is reflected in an opposite account.
