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denpristay [2]
3 years ago
12

Dimeback, Inc., is obligated to pay its creditors $7,400 during the year. Required: (a) What is the market value of the sharehol

ders' equity if assets have a market value of $10,800? (b) What if assets equal $6,500?
Business
1 answer:
Serjik [45]3 years ago
6 0

Answer:

a.  $3,400

b. $0

Explanation:

As we know

Total assets = Total liabilities + owners equity

a. In the first case

The shareholder equity would be

= Total assets - total liabilities

= $10,800 - $7,400

= $3,400

b. In the first case, the shareholder equity would be zero as it should not be negative. The negative value would be

= Total assets - total liabilities

= $6,500 - $7,400

= -$900    

So it would be zero

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Activity Cost Activity Allocation Base Allocation Rate
Flura [38]

Answer:

Following is attached the solution to each part of the given question.

I hope it will help you a lot!

Explanation:

3 0
3 years ago
On January 5, 2020, Sheffield Corporation received a charter granting the right to issue 5,100 shares of $100 par value, 7% cumu
andrew11 [14]

Answer:

 Sheffield Corporation

Journal Entries

Date             Description                              DR                           CR

Jan 11         Cash                                       292,500

                 Common stock                                                     195,000

                 Paid in Capital for common stock                         97,500

               

              <em>Being the amount received on issue of </em>

<em>              </em>

Feb 11     Equipment                                   53,300

              Factory Building                          152,000

              Land                                             295,000

             Prefereed stock                                                     410,000

             Paid -in -capital for Preferred stock                        90,300

July 29   Treasury stock                              25,600

              Cash                                                                            25,600

            Being the payment of own share purchased

Aug 10    Cash                                                   22,400

                Retained Earnings                               3,200

               Treasury stock                                                      25,600

 

Dec 31       Retained  earnings                              10,025

                 Dividend(0.35*19500)                                            6,825  

                 Treasury stock                                                         3,200  

Dec 31       Net Income ( Income Summary)      158,400

                  Retained Earnings                                               158,400

Balance sheet as at Dec 31

Equity

Common stock at $10 par value                                      $195,000

7% Preferred Stock                                                            410,000

Paid in capital for common stock                                        97,500

Paid in capital for Preferred stock                                        90,300

Retained Earnings ( 158,400-6825-3200)                         <u> 148,375</u>

                                                                                             <u>  941,175</u>

Explanation:

4 0
3 years ago
Question 6 write an essay on the forms of ownership​
Ne4ueva [31]

Answer:

huh?no one's got time to write an essay for you

3 0
2 years ago
Read 2 more answers
Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% annual coupon rate, and a par value of $1,000. The discount rate is
azamat

Answer:

$977.93

Explanation:

This is a coupon paying bond. Using a financial calculator, input the following;

Time to maturity; N = 15

Coupon payment; PMT = 7.25% *1000 = 72.5

Face Value; FV = 1,000

Annual interest rate; I/Y = 7.5%

then compute the price of the bond, a.k.a present value; CPT PV = 977.93

Therefore, the price of the bond today is $977.93

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3 years ago
Ok so i have a ton of questions i need answered for this test im taking. its on economics. anyone think they can help? thank you
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5 0
3 years ago
Read 2 more answers
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