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gulaghasi [49]
3 years ago
7

If Larger Company issues 1,800 shares of $7 par value common stock for $32,400, determine the result of the transaction on the a

ccounts. Select the correct answer. Paid-in Capital in excess of Par Value will be credited for $19,800. Cash will be debited for $12,600. Common Stock will be credited for $32,400. Paid-in Capital in excess of Par Value will be credited for $12,600.
Business
1 answer:
Sav [38]3 years ago
4 0

Answer:

The correct option is the first one,Paid-in Capital in excess of Par Value will be credited for $19,800

Explanation:

The cash proceeds received was $32,400 which effectively means that cash account would be debited with $32,400.

The total par amount that would be credited to common stock is $12,600($7*1,800),hence the balance of $19,800 ($32,400-$12,600) belongs to paid in capital in excess of par value.

The appropriates entries therefore are:

Dr cash                  $32,400

Cr common stock                                       $12,600

Cr paid in capital in excess of par value   $19,800

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Dafna1 [17]

I would say mindfulness because although eating and exercising can help clear you mind and keep you healthy, it won’t help you to make a decision as picking a responsible person for a job like this

6 0
2 years ago
1. Suppose banks keep no excess reserves and no individuals or firms decide to hold more cash during the deposit expansion proce
anygoal [31]

Answer:

Increase by $500 m

Increase by $250 m  instead of $500 m

Explanation:

Since all the deposits over and above the reserve requirements are loaned out by the banks,

We can calculate the Credit multiplier and see how a new 50 m deposit will affect the money supply.

Credit multiplier @ 10% reserve = 1 / 0.10 = 10 times

So a new deposit of 50 m will create new money of 10 * 50 = 500 m thus increasing the money supply by this amount.

For a 20% reserve ratio, Credit multiplier changes a,

Credit Multiplier = 1 / 0.2 = 5 times

This will change the money supply by = 5 * 50 = 250 m. This is the amount of new money that will be created with reserve ratio of 20%.

Hope that helps.

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2 years ago
Which of the following is the best reason for including a photograph in a formal business document?
Luba_88 [7]

C. Your reader wants to see exactly what your product looks like.(APEX VERIFIED)

4 0
3 years ago
Read 2 more answers
You have just received a windfall from an investment you made in a​ friend's business. She will be paying you $ 39 comma 769 at
Sergio [31]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

She will be paying you $39,769 at the end of this​ year, $79,538 at the end of next​ year, and $119,307 at the end of the year after that​.

The interest rate is 11.7 % per year.

A) We need to use the following formula:

NPV= Cf/[(1+i)^n]

NPV= 39769/1.117^1 + 79538/1.117^2 + 119307/1.117^3

NPV= 184,958.1

B) We need to use the following formula:

FV= PV*(1+i)^n

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8 0
3 years ago
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soldier1979 [14.2K]

Answer:

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Explanation:

Traditional economic theory is based on three fundamentals, the first one being we are all rational consumers or suppliers.

Alex is trying to earn some money, completely rational and intelligent. He is able to do it by satisfying his neighbors´ need for lawn mowing.

Is he greedy? Probably yes, but he is still rational. No one is forced to pay his fee, so his also rational neighbors will decide if the price is correct or not. Those who believe the price is correct will hire him. If someone believes his is charging too much and that they can offer the same service for a lesser price,  should show up and offer their cheaper services.

Can people who buy a 25 million dollar car be considered irrational? No they can´t, because for them is probably an investment or they simply have  tons of money and like extremely expensive cars. What one person considers expensive may be considered cheap by someone else.

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2 years ago
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