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anyanavicka [17]
3 years ago
15

A company has the following transactions during the year related to stockholders’ equity.

Business
1 answer:
Ivanshal [37]3 years ago
5 0

Answer:

Journal entries are given below

Explanation:

February 1

(Issues 5,000 shares of no-par common stock for $15 per share)

                                          DEBIT       CREDIT

Cash(5000 x $15)            $75,000

Common stock                                    $75,000

May 15

(Issues 500 shares of $10 par value, 7.5% preferred stock for $12 per share)

                                             DEBIT       CREDIT

Cash (500x$12)                   $6,000

Preferred stock (500x$10)                    $5,000

Additional paid in capital                       $1,000    

October 1

Declares a cash dividend of $0.75 per share    

                                                             DEBIT       CREDIT

Retained Earnings (5500x$0.75)       $4,125

Dividend Payable                                                  $4,125

October 15 Date of Record

No Entry Required

October 31 Pays the cash dividend

                                           DEBIT       CREDIT

Dividend Payable              $4,125

Cash                                                   $4,125

       

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Bess [88]

The category would be,

1.) House Rent allowance

2.) Medical Allowance

3.) Conveyance Allowance

4.)Basic Salary


8 0
2 years ago
Suppose that there is asymmetric information in the market for used cars. Sellers know the quality of the car that they are​ sel
zepelin [54]

Answer:

$22,500

Explanation:

Chance of getting low quality car = 50%

Chance of getting high quality car = 50%

Cost of low quality car = $15,000

Cost of high quality car = $30,000

So, Price of the car = 50% of lower quality + 50% of higher quality

= (50% × $15,000) + (50% ×30,000)

=  $7,500 + $15,000

= $22,500

Hence, price of the used car will be $22,500.

3 0
3 years ago
The Shoe Exchange issues 3,000 shares of its $1 par value common stock to provide funds for further expansion. The issue price i
Nezavi [6.7K]

Answer:

Debit Cash account           $57,000

Credit Shares capital         $3,000

Credit Share premium       $54,000

Being entries to record cash received from the issuance of shares

Explanation:

Par value per share = $1

Issue price per share = $19

Premium per share from issue = $19 - $1

                                                   = $18

Number of issued shares = 3000

Share capital balance from issue = 3000 × $1

                                                          = $3000

Premium balance = 3000 × $18

                             = $54,000

Cash received from Issue = 3000 × $19

                                           = $57,000

Entries to be posted

Debit Cash account           $57,000

Credit Shares capital         $3,000

Credit Share premium       $54,000

Being entries to record cash received from the issuance of shares.

4 0
3 years ago
Fred takes a personal assessment that tells him that he would be great in the Agriculture, Food, and Natural Resources career cl
puteri [66]

Answer:

C. being outdoors, horticulture, raising animals

Explanation:

Horticulture refers to the process of cultivating trees, plant agriculture either for promoting recreational activities, for decoration or food purposes. If Fred takes interest in Agriculture, food and natural resources; that means he would practise horticulture as a career. Also, other source of foods which includes activities such as raising animals, fishing, hunting, etc would require Fred to be outdoor. The animals raised in outdoors are mostly farm animals.

7 0
3 years ago
Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Co
Vesnalui [34]

Answer:

1. 120 hot dogs per day

2. $1,920

3. Inelastic

4.200

Explanation:

1. Break even is a term given to a situation where there is no profit or loss made by an organization for product sales.

Formula is;

Fixed cost /contribution per unit, where contribution per unit is selling price - variable price.

Solution.

Since Total fixed cost =$1,200, Selling price=$16, Variable costs=$6

=Fixed costs/(Selling price - Variable costs).

= $1,200/($16 - $6)

=$1,200/$10

=120 hot dogs.

2. Break even point in dollar sales volume. This refers to the number of products that would be produced and sold to cover production cost.

Formular is ;

Fixed cost/contribution per unit× Sales price per unit.

Solution

=Fixed costs/(Selling price - Variable costs)× Selling price.

=$1,200/($16 - $6)×$16

=$1,200/$10×$16

=$1,200×$16/$10

=$19,200/$10

=$1,920

3. The demand would be inelastic. Inelastic demand is when the demand of buyers does not change as much as changes in price.

4. Achieve level of sales target. This is when management wanted to know the sales level at which targeted profit will be achieved.

Formula

Fixed costs + Target profit/Contribution per unit

Solution.

=Fixed costs + Target profit/(Selling Price - Variable costs)

= $1,200 + $800/($16-$6)

=$1,200 + $800/($10)

=$2,000×/$10

=$200

=200 cases would needed to sell

6 0
3 years ago
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