Answer: The correct answer is "(A) Debit Accounts Receivable and credit Cash for $560".
Explanation: The non-existent 560 must be adjusted in the cash account, and the 560 receivable must be added to the third party that issued the check in the "accounts receivable" account.
The entry would be:
--------------------------------- . ------------------------------------------
Accounts Receivable 560
Cash 560
--------------------------------- . --------------------------------------------
Answer:
The cost of preferred stock is 10.2%
Explanation:
The actual amount realized from issuing the preferred of $100 per share par value is the par value less cost of issuing and selling stock of $2 per share, in other words,$98($100-$2) was realized per share from the issuance.
Having known the net amount realized, the cost of preferred stock can be calculated as follows:
cost of preferred stock =return on preferred stock/net amount realized
return is 10% of $100(par value), i.e $10 per share
cost of preferred stock =$10/$98=10.2%
Note that preferred is not tax deductible like debt financing , hence the rate of tax given is not considered in determining the cost of preferred stock.
The answer is: "<span>test marketing" .
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Answer:
Predetermined rates for each cost pool
Ordering = <u>$120,000</u>
240,000 orders
= $0.50 per order
Machine set-up = <u>$85,000</u>
340,000 set-ups
= $0.25 per set-up
Inspection = <u>$75,000</u>
75,000 inspections
= $1 per inspection
Explanation:
The predetermined rates are obtained by dividing the estimated overhead for each cost pool by the cost driver.
Answer:
1)
Debit Cash/Bank 27,000 (4,500 shares x $6 per share)
Credit Common Stock 13,500 (4,500 shares x $3 per share)
Credit Paid-In Capital in Excess of Stated Value—Common 13,500 (4,500 shares x $3 per share)
2)
Debit Cash/Bank 135,000 (4,500 shares x $30 per share)
Credit preferred Stock 135,000 (4,500 shares x $30 per share)
Explanation:
any issuing price of stock above par value will be credited in "Paid-In Capital in Excess of Stated Value—Common"
