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inessss [21]
2 years ago
5

The following events occurred for Favata Company: Received $12,000 cash from owners and issued stock to them. Borrowed $9,000 ca

sh from a bank and signed a note due later this year. Bought and received $1,000 of equipment on account. Purchased land for $16,000; paid $1,400 in cash and signed a long-term note for $14,600. Purchased $5,000 of equipment; paid $1,400 in cash and charged the rest on account. Required: For each of the events in above, prepare journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
MAVERICK [17]2 years ago
7 0

Answer:

The journal entries is as follows:

(1) Received $12,000 cash from owners and issued stock to them

Cash A/C   Dr.  $12,000

To Stock capital a/c           $12,000

(2) Borrowed $9,000 cash from a bank and signed a note due later this year.

Cash a/c   Dr. $9,000

To Notes Payable(short term)         $9,000

(3) Bought and received $1,000 of equipment on account.

Equipment a/c   Dr. $1,000

To Vendor's a/c                    $1,000

(4) Purchased land for $16,000; paid $1,400 in cash and signed a long-term note for $14,600.

Land a/c     Dr.    $16,000

To cash a/c                            $1,400

To Note payable(long term)  $14,600

(5) Purchased $5,000 of equipment; paid $1,400 in cash and charged the rest on account.

Equipment a/c   Dr. $5,000

To cash a/c                            $1,400

To Vendor's a/c                    $3,600

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timurjin [86]

Reputation.

If a company has a bad reputation of allowing the sale of counterfeit goods, buyers will not trust the site and will not buy from it.

3 0
3 years ago
Read 2 more answers
Bond P is a premium bond with a coupon rate of 9 percent. Bond D has a coupon rate of 5 percent and is currently selling at a di
Firdavs [7]

Answer:

a) 7% as their market price will adjsut to give the same yield as the market

b) bond P = -10.17

 bonds D  = 10.07

Explanation:

we have to calcualte the price variation of the bonds from now (10 years to maturity) to next year (9 years)

Bond P

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 90.000

time 10

rate 0.07

90 \times \frac{1-(1+0.07)^{-10} }{0.07} = PV\\

PV $632.1223

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   10.00

rate  0.07

\frac{1000}{(1 + 0.07)^{10} } = PV  

PV   508.35

PV c $632.1223

PV m  $508.3493

Total $1,140.4716

then, at time = 9

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 90.000

time 9

rate 0.07

90 \times \frac{1-(1+0.07)^{-9} }{0.07} = PV\\

PV $586.3709

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   9.00

rate  0.07

\frac{1000}{(1 + 0.07)^{9} } = PV  

PV   543.93

PV c $586.3709

PV m  $543.9337

Total $1,130.3046

Capital loss: 1,130.30 - 1,140.47 = -10.17

We repeat the process for bond D

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 50.000

time 10

rate 0.07

50 \times \frac{1-(1+0.07)^{-10} }{0.07} = PV\\

PV $351.1791

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   10.00

rate  0.07

\frac{1000}{(1 + 0.07)^{10} } = PV  

PV   508.35

PV c $351.1791

PV m  $508.3493

Total $859.5284

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 50.000

time 9

rate 0.07

50 \times \frac{1-(1+0.07)^{-9} }{0.07} = PV\\

PV $325.7616

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   9.00

rate  0.07

\frac{1000}{(1 + 0.07)^{9} } = PV  

PV   543.93

PV c $325.7616

PV m  $543.9337

Total $869.6954

Capital gain: 869.70 - 859.53 = 10.07

6 0
3 years ago
Thyme, Inc. owns 16,000 of Sage Co.'s 20,000 outstanding common shares. The carrying value of Sage's equity is $500,000. Sage su
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Answer:

The total non controlling interest after the additional shares are issued is equal to $252,000.

Explanation:

Before the issue Sage co's had 20,000 shares with total equity value of $500,000. After the issue of 5000 shares worth $200,000, the total number of shares and equity would be -

Total number of shares = 25,000 ( 20,0000 + 5000 )

Total equity value          = $700,000

Now Thyme inc owns 16,000 number of shares , which means that minority holds 9000 number of shares . Now the price per share would be =

       TOTAL EQUITY / NUMBER OF SHARES

         $700,000 / 25,000

=        $28

NON CONTROLLING INTEREST = Minority shares x Price per shares

                                                      = 9000 x $28

                                                      = $252,000

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3 years ago
Star workers and star athletes share a high need for​ ______________.
djverab [1.8K]

Star Workers and Star Athletes share a high need for achievement.  

A need for achievement, also know as N-Ach, describes <u>how an individual has a desire to attain either one of these or a combination: skill mastery, great accomplishments, or high standards</u>.

Star workers and athletes are usually individuals who have a high need to become the best or reach great accomplishments in their field, thus it is accurate to say that both groups will have a high need for achievement.

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3 years ago
Why might you choose an investment with high risk instead of one with low risk?
NeX [460]

The reason of choosing of investment with high risk instead of one with low risk because the high risks stocks, bonds are having more returns as compared to low risks,  especially long term stocks.

<h3>What is high risk investment?</h3>

High risk investment is the one who have high chance of loss of capital or under-performance or have a great percentage of amount invested in some stocks.

Some high risk investments are Cryptocurrency, Individual Stocks, Initial Public Offerings, Venture Capital or Angel Investing, Real Estate and others.

Thus, The reason of choosing of investment with high risk instead of one with low risk

For more details about high risk investment, click here:

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8 0
2 years ago
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