Answer:
a. No journal entry is required.
b. Par per share after the split = $2.50
Explanation:
a. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend.
No journal entry is required for this because the total value of the shares has not changed due to 2-for-1 stock split.
This is because the 2-for-1 stock split has only increased the number of shares outstanding by 2, but at the same time reduces the par value of the share by half making the total value of the shares to remain the same.
b. What is the par per share after the split.
As explained in a above, the effect of 2-for-1 stock split is to reduce the par value of the share by half.
Therefore, the par per share after the split can be calculated as follows:
Par per share after the split = Par per share before the split / 2 = $5 / 2 = $2.50
The answer is B. Because that is what helps you the most:)
Answer:
2 years
Explanation:
Payback period is the amount of time it takes to recover the amount invested in a project from its cumulative cash flows
In the first year, -$85,000 + $30,000 = -$55,000 is recovered
In the second year, -$55,000 + $55,000 = 0
The total amount invested is recovered in the second year
Answer:
Office Depot is following a multichannel marketing
Explanation:
Multichannel marketing is a strategic form of marketing in which a firm, company or business provides customers or consumers a number of ways of making purchases such as through the internet or a visit to their retail stores.
This kind of marketing understands that customers are inclined to use different channels in making purchases. As such, information about goods and services are put up on both online and offline channels. It also has provisions for engaging customers via emails and online customer service interaction on a web page.
Complete Question:
The market system:
A. produces considerable inefficiency in the use of scarce resources.
B. effectively harnesses the incentives of workers and entrepreneurs.
C. is not consistent with freedom of choice in the long run.
D. has slowly lost ground to emerging command systems.
Answer:
B. effectively harnesses the incentives of workers and entrepreneurs.
Explanation:
An economic system can be defined as a series of governmental or societal arrangements and a coordinating mechanism used for the allocation of available resources, economic inputs, goods and services across a particular country. The economic system differs according to the method used to coordinate economic activities and who the factors of production belongs to.
Generally, there are basically two (2) main types of economic systems and these are;
1. Command systems.
2. Market systems.
The market system effectively harnesses the incentives of workers and entrepreneurs because workers are able to engage in division of labor and are well compensated for their efficiency in service while the entrepreneur are usually rewarded with an increase in sales and profits.
The market system allows participants to have property rights such as trademarks, patents and copyright. Also, market systems are regulated by the competition among individuals (traders or entrepreneurs) and this gives direction to the market as they pursue self interests and are independent.
