How did the 1950s get their money

Partnership records show the following capital balances at the date of Hopkin's withdrawal: M. Hammel, $80,000; D. Hopkins, $210

Anestetic [448]

Answer:

Dr D. Hopkins, Capital 210,000

Cr P. Houghton, Capital 10,000

Cr M. Hammel, Capital 10,000

Cr Cash 230,000

Explanation:

Preparation of the December 31 journal entry for the partnership.

Based on the information given the December 31 journal entry for the partnership will be :

Dr D. Hopkins, Capital 210,000

Cr P. Houghton, Capital 10,000

(100,000-80,000/2)

Cr M. Hammel, Capital 10,000

(100,000-80,000/2)

Cr Cash 230,000

3 0

3 years ago

Bond A pays $8,000 in 20 years. Bond B pays $8,000 in 10 years. (To keep things simple, assume these are zero-coupon bonds, whic

Nikolay [14]

Answer:

To find the value of bond, let's use the formula:

Value of bond = price of bond / (1 + interest rate)ⁿ

Here n represents number of years.

At 7% interest rate:

Value of bond A = $\frac{8000}{(1+0.07)^2^0} = 2067.35$

Value of bond B = $\frac{8000}{(1+0.07)^1^0} = 4066.79$

At 14% interest rate:

Value of bond A = $= \frac{8000}{(1+0.14)^20} = 582.09$

Value of bond B = $= \frac{8000}{(1+0.14)^10} = 2157.95$

The difference between bond A at 7% and 14%:

$582.09 - $2067.35 = -$1485.26

The difference between bond B at 7% and 14%:

$2157.95 - $4066.79 = -$1908.84

% decrease between bond A and B:

$\frac{1908.84 - 1485.26}{1908.84} * 100 = 22.19$

Therefore, from the above calculations, we have the following:

Suppose the interest rate is 7%, Using the rule of 70, the value of Bond A is approximately $2067.35, and the value of Bond B is approximately $4066.79 .

Now suppose the interest rate increases to 14 percent.

Using the rule of 70, the value of Bond A is now approximately $528.09 , and the value of Bond B is approximately $2157.95 .

Comparing each bond's value at 7 percent versus 14 percent, Bond A's value decreases by a 22.19 percentage than Bond B's value.

The value of a bond decreases when the interest rate increases, and bonds with a longer time to maturity are more sensitive to changes in the interest rate.

4 0

3 years ago

On October 1, Hawking Corp. had 40,000 shares of $2 par value common stock outstanding before it declared a 2-for-1 stock split.

Naily [24]

Answer:

1. After the split, how many shares of common stock are outstanding and what is their par value per share?

40,000 stocks outstanding x 2 = 80,000 stocks outstanding after the stock split

par value of each stock = $2 / 2 = $1

Aren't both questions the same?

2. After the split, the number of shares outstanding is <u>80,000</u> and the par value per share is <u>$1</u>.

Explanation:

When a stock split happens, the total number of outstanding stock is just multiplied by the stock split factor, in this case it was 2, but other times it might be 4 or 7 (like Apple stock). You just multiply total outstanding stock by the split number. On the other hand, par value is calculated by dividing the current par value by the split number.

5 0

3 years ago

Markus Company’s common stock sold for $4.50 per share at the end of this year. The company paid a common stock dividend of $0.6

sergey [27]

1)Earnings per share=$0.77 per share

2)Price- earning ratio = 3.57 times

3)Dividend payout ratio = 71.43%

4)Dividend yeild ratio = 20%

Explanation:

1)

The earnings per share is calculated as,

Earnings per share = net income / number of shares outstanding

=$92.400 / 120,000

EPS=$0.77 per share

2)

Th price- earning ratio is calculated as

price per earning ratio = market price per share / earning per share

=$2.75 / $0.77

Price earning ratio =3.57 times

3)

The divided payout ratio is calculated as

Divided payout ratio = Divided per share / Earning per share

=$0.55/$0.77

Divided payout ratio=71.43%

4)The Dividend yield ratio is calculated as

Dividend yield ratio = Dividend per share / Price per share

=$0.55/$2.75

Dividend yield ratio =20%

5 0

3 years ago

Oriole Company has old inventory on hand that cost $24750. Its scrap value is $33000. The inventory could be sold for $82500 if

lara [203]

Answer:

Manufacture further and sell it for $82,500

Explanation:

Profit in such case will be:

Sales amount $33,000

Less: Cost of Inventory $24,750

Profit $8,250

Process further and sell.

Profit will be:

Sales value: $82,500

Less: Further processing cost $24,750

Less: Cost of Inventory $24,750

Profit on Inventory $33,000

6 0

4 years ago