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MrRissso [65]
3 years ago
14

Inside Incorporated was issued a charter on January 15 authorizing the following capital stock: Common stock, $6 par, 100,000 sh

ares, one vote per share. Preferred stock, 7 percent, par value $10 per share, 5,000 shares, nonvoting. The following selected transactions were completed during the first year of operations in the order given: Issued 20,000 shares of the $6 par common stock at $18 cash per share.Issued 3,000 shares of preferred stock at $22 cash per share. At the end of the year, the accounts showed net income of $38,000.Prepare the stockholders' equity section of the balance sheet at December 31.
Business
1 answer:
marin [14]3 years ago
8 0

Answer:  

$1,114,000   -  total equity section

Balance sheet extract

common stock   (120,000 units)                   $720,000

common stock share premium                     $240,000

preference shares (8 000 units)                   $80,000

preference share premium                            $36,000

Profit (net income)                                       <u>     $ 38,000</u>

                                                                          $1,114,000      

Explanation:

common stock account (100,000 + 20,000) x $6 par value = $720,000

common stock premium per unit is calculated $18 minus par value of $6 = $12. total premium is 12 x 20,000 units issued= $240,000

Preference shares account = (5000+3000) x $10 = $80,000

preference share premium (22 minus 10) = $12 per unit

total preference shares premium is $12 x 3000 issued units= $36,000

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Along any downward sloping straight-line demand curve: Group of answer choices both the price elasticity and slope are constant.
vitfil [10]

Answer:

the price elasticity varies, but the slope is constant

Explanation:

The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

At the midpoint of the demand curve, demand is usually unit elastic. Above the midpoint of the demand curve, demand is elastic and blow the midpoint, demand is inelastic

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

8 0
3 years ago
Navajo Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small computer with a fair value o
UNO [17]

Answer:

Dr Computer                                       $3,300

Dr Accumulated depreciation-Truck $18,000

Cr Truck - Fixed Asset                                              $20,000

Cr Gain on disposal of truck (Balancing Figure)    $800

Cr Cash  Account                                                       $500

Explanation:

The disposal of a Fixed asset is a three step procedure and is given as under:

  1. Remove the Accumulated depreciation and the cost of the fixed asset
  2. Record the receipt of the consideration at Fair Value
  3. Record the payment or receipt of the cash

Always remember that the balancing figure will go to Profit and loss statement.

<u>Step1: Remove the Accumulated depreciation and the cost of the fixed asset</u>

The asset value and the accumulated depreciation would be removed from the books of accounts and the balance figure would be transfered to profit and loss account.

Dr Accumulated Depreciation $18,000

Dr Profit & Loss Account          $2,000

Cr Truck - Fixed Asset                            $20,000

<u></u>

<u>Step2: Record the receipt of the consideration at Fair Value</u>

Dr Computer - Fixed Asset $3,300

Cr Profit and Loss Account           $3,300

<u>Step3: Record the payment or receipt of the cash</u>

The receipt of the payment will treated as:

Dr Profit and loss Account $500

Cr Cash Account                        $500

The aggregate Effect if I summarizee would be:

Dr Computer                                       $3,300

Dr Accumulated depreciation-Truck $18,000

Cr Truck - Fixed Asset                                              $20,000

Cr Gain on disposal of truck (Balancing Figure)    $800  

Cr Cash  Account                                                       $500

8 0
3 years ago
1.Danner Company expects to have a cash balance of $45,000 on January 1, 2017. Relevant monthly budget data for the first 2 mont
Nat2105 [25]

Answer:

\left[\begin{array}{ccc}&January&February\\$beginning&45000&27500\\$receipts&97000&150000\\$disbursement&-114500&-163500\\$interest&0&0\\$subtotal&27500&14000\\$minimun&20000&20000\\$Financing&&\\$beginning&0&0\\$payment/loan&0&6000\\$ending&0&6000\\&&\\$ending cash&27500&20000\\\end{array}\right]

Explanation:

On January we collect the 85,000 from revenues and the 12,00 form marketable securities.

Then, we add up each disbursement:

Materials 50000

Labor       30000

Overhead (net of depreciation) 19,500

Selling and administrative 15000

Total 114,500

Then we solve for the cash balance and get the blaance as it is higher than 20,000 we do not need financing

Then, this value is the beginning cash for February. As the ending balance is 14,000 we will take 6,000 financing to reach the bare minimum of 20,000

3 0
3 years ago
Give an example of a type of presentational aid you have used in a past speech. Do you feel the presentational aid was effective
const2013 [10]

Answer:

assistant chief of staff body guard

8 0
3 years ago
Happinessistheroad Corp. has the following information available regarding its labor: Managers expected to pay $11 per direct la
777dan777 [17]

Answer:

The actual labor rate per hour is $12

Explanation:

First and foremost, we need to understand that a direct labor spending variance of $990(unfavorable) means that the firm spent an additional $990 compared to what was expected.

Also, the spending variance is computed as the actual labor rate minus the standard labor rate multiplied by the actual labor hours worked

spending variance=(actual labor rate-standard labor rate)*actual labor hours

spending variance=$990

actual labor rate=unknown=(assume it is X)

standard labor rate=$11

actual labor hours worked=990

$990=(X-$11)*990

$990/990=X-$11

$1=X-$11

X=$1+$11

X=actual labor rate=$12

8 0
2 years ago
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