Feedback with the intention to help by listing reasonable arguements
Explanation:
The journal entry is as follows:
Land Dr $70,000
Additional paid in capital $5,000
To Common stock $75,000
(Being the common stock is issued in exchanged for cash)
The computation of the additional paid in capital is shown below:
= Common stock - the appraised value of land
where,
The common stock = 750 shares × $100 = $75,000
And, the appraised value of land is $70,000
So, the remaining balance is
= $75,000 - $70,000
= $5,000
The $5,000 would be recorded as an additional paid in capital
Answer: d) $8750
Explanation:
The Cash buffer is also the margin of the total value of the stock.
= Initial margin * Investment value
= 70% * (125 * 100)
= 70% * 12,500
= $8,750
Answer:
$1,290
Explanation:
The revenue to be recognized in march is dependent on if the revenue recognition criteria was met in march. These criteria are
- the cost of goods delivered or service rendered can be measured reliably
- good/services were delivered/rendered in the month
This is irrespective of whether cash was collected or not under the accrual method.
Given that Digby delivers 86 units in March at a price of $15.00, revenue to be recognized
= 86 * $15
= $1,290
Answer:
$14,837
Explanation:
Calculation for what The adjusted cash balance should be
Bank balance$14,237
Add Deposit in transit$4,500
Less Outstanding checks ($3,900)
Adjusted bank balance$14,837
($14,237+$4,500-$3,900)
Book balance$13,162
Less Bank service fees ($50)
Add Note collected $1,725
Adjusted book balance$14,837
($13,162-$50+$1,725)
Therefore The adjusted cash balance should be:
$14,837
