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sveticcg [70]
3 years ago
5

A corporation issues 50 packages of securities for $154 per package. Each package consists of three shares of $5 par common stoc

k and one share of $50 par preferred stock.If the market values of $40 per share for the common stock and $100 per share for preferred stock are known, the journal entry to record the sale would assign a total value to the preferred stock (preferred +APIC on preferred) of A. $ 3,500 B. $ 4,200 C. $ 5,775 D. $ 6,000
Business
1 answer:
Darina [25.2K]3 years ago
4 0

Answer:

Market value of the stocks   $

Market value of common stocks (3 shares x $40)  120

Market value of preferred stock ( 1 share x $100)   100

Total market value of the stocks                              220

Total value of 50 packages of securities

= 50 x $154

= $7,700

The total value of preferred stocks

= $100/$220 x $7,700

= $3,500

The correct answer is A

Explanation:

There is need to calculate the market value of the two stocks by multiplying the units of each stock by their respective current market price. Then, we will determine the total value of the 50 packages of securities, Finally, we will determine the total value to be assigned to preferred stock, which is the market value of preferred stock divided by the total market value multiplied by the total value of 50 packages of securities.

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4 years ago
Before month-end adjustments are made, the February 28 trialbalance of Bose's Enterprise contains revenue of $11,000 andexpenses
AleksAgata [21]

Answer:

$2,800      

Explanation:

<u>REVENUE</u>

Revenue                                                                       $11,000

Add:

B.    Revenue earned but not yet billed = $2,800

D. Unearned revenue noe earned         =<u> $2,500  </u>  <u>  $5,300   </u>

Total Adjusted Revenue                                             <u>  $16,300   </u>

<u>EXPENSES</u>

Expenses                                                                       $11,000

Add:

A.   Depreciation for February                  = $1,200.

C. Accrued interest expense                    =   $800    

E. Prepaid insurance                                  =<u>   $500     </u> <u> $2,500       </u>

Total Adjusted expenses                                               <u>  $13,500   </u>

Correct net income = Total Adjusted Revenue - Total Adjusted expenses  

                                 = $16,300 - $13,500

                                 = $2,800                              

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