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Veronika [31]
3 years ago
9

Payton, Inc.'s charter authorized 100,000 shares of stock with a par value of $1 per share. Payton issues 100 shares at a market

value of $5 per share. The journal entry to record this transaction will include a credit to _____ in the amount of _______.
Business
1 answer:
hoa [83]3 years ago
6 0

Answer:

Common stock and $100

Explanation:

The journal entry is shown below:

Cash Dr $500   (100 shares × $5)

     To Common stock $100  (100 shares × $1)

     To Additional paid in capital in excess of par value - common stock  (100 shares × $4)

(Being the issuance of the common stock is recorded)

For recording this we debited the cash as it increased the assets and credited the common stock and additional paid in capital as it increased the stockholder equity    

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Jane is a very intelligent graduate of FIN 3601. As such, she knows she should will start contributing into her company's retire
labwork [276]

Answer:

The amount that Jane will have in her retirement account 30 years from now is $943,650.37.

Explanation:

Jane’s monthly savings = $250

Amount added monthly by Jane’s firm = Jane’s monthly savings * Amount added by Jane’s firm for every dollar = $250 * $0.50 = $125

Total monthly savings to Jane’s 401(k) = Jane’s monthly savings + Amount added monthly by Jane’s firm = $250 + 125 = $375

Since Jane decides to allocate $250 at the end of each month into her 401(k), this implies the relevant formula to use to calculate the amount Jane will have in her retirement account 30 years from now is the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value or the amount that Jane will have in her retirement account 30 years from now = ?

M = Total monthly savings to Jane’s 401(k) = $375

r = Average monthly interest rate = Average annual interest rate / 12 = 10.50% / 12 = 0.1050 / 12 = 0.00875

n = number of months = number of years * number of months in a year = 30 * 12 = 360

Substituting the values into equation (1), we have:

FV = $375 * (((1 +0.00875r)^360 - 1) / 0.00875) = $375 * 2,516.40 = $943,650.37

Therefore, the amount that Jane will have in her retirement account 30 years from now is $943,650.37.

5 0
3 years ago
Corporate financing comes ultimately from:_______
zhannawk [14.2K]

Corporate financing comes ultimately from savings by households and foreign investors.

Option b

<u> Explanation: </u>

The respective government will formulate the corporate financing policy according to the economic need of the country. The economic policies will also device the rules and regulations for the corporate financing either in the way of banking institution or by foreign investment.

Corporate financing done by the banking institution will have the contribution from savings of households and another type of funding is foreign investment which is carried out by joint venture agreement. This way the country’s economy will mainly depends on corporate financing.  

3 0
3 years ago
DL and MOH budget: The Production Department of Top of The World Corporation has submitted the following forecast of units to be
alexira [117]

Answer and Explanation:

a. The computation of the total estimated direct labor cost is shown below:

Particulars     1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Multiply  Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Total Direct labor hour required 2675 2425 2925 3175 11200

Multiply  Direct labor rate per hour $14 $14 $14 $14 $14

Estimated Direct labor cost $37,450 $33,950 $40,950 $44,450 $156,800

b.  The total estimated manufacturing cost and the cash disbursement is shown below:

Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Multiply Total Direct labor hour required 2675 2425 2925 3175 11200

Variable manufacturing overhead rate $2 $2 $2 $2 $2

Estimated Variable manufacturing overhead cost $5,350 $4,850 $5,850 $6,350 $22,400

Add: Fixed manufacturing overhead $67,000 $67,000 $67,000 $67,000 $268,000

Total estimated manufacturing overhead $72,350 $71,850 $72,850 $73,350 $290,400

Less: depreciation $16,000 $16,000 $16,000 $16,000 $64,000

Cash disbursement for manufacturing overhead $56,350 $55,850 $56,850 $57,350 $226,400

We simply applied the above format to find out the manufacturing overhead, cash disbursement, and the direct labor cost

7 0
3 years ago
If most cartel members keep their agreement to cut back production: a. it's not profitable in the short run for another member t
Stells [14]

Answer: b. it's profitable in the short run for another member to increase production.

Explanation:

This refers to an oligopolistic market where there are few producers of a good. These producers can come together to create a cartel that fixes prices for the goods and services they produce.

If they agree to cut back production, this will have the effect of increasing prices due to a reduction in supply. If a member decides to increase production, they would enjoy profits in the short term from the increased prices.

The other members would however respond by increasing production as well so those profits would stop towards the long run.

4 0
3 years ago
Industries’ capital structure features 63 percent equity, 7 percent preferred stock, and 30 percent debt. If the before-tax comp
djyliett [7]

Answer:

16.091%

Explanation:

The computation of the WACC is shown below:

= (Weightage of debt × cost of debt) × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of  common stock) × (cost of common stock)

= (0.3 × 9%) × ( 1 - 21%) +  (0.07 × 9.5%) +  (0.63 × 11.60%)

= 2.133% + 6.65% + 7.308%

= 16.091%

Basically we multiplied the weightage with its cost

5 0
3 years ago
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