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Delvig [45]
3 years ago
9

Western Wear Clothing issues 2,700 shares of its $0.01 par value common stock to provide funds for further expansion. Assuming t

he issue price is $11 per share, record the issuance of common stock. ?
Business
1 answer:
balandron [24]3 years ago
8 0

Answer:

The Journal entry is as follows:

Cash A/c                    Dr. $29,700

To common stock                            $27

To Additional Paid in Capital in excess of par - Common Stock $29,673

Workings:

Shares issued = 2,700

Par value common stock to provide funds for further expansion = $0.01

Issue price = $11 per share

cash = Shares issued × Issue price per share

       =  2,700 × $11

       = $29,700

Common Stock = Shares issued × Par value common stock

                          = 2,700 × $0.01

                          = $27

Additional Paid in Capital in excess of par - Common Stock:

= cash - Common Stock

= $29,700 - $27

= $29,673

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Explanation:

For computing the cash payments we need to calculate the following amounts which are as follows

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3 0
3 years ago
You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government T-bills 3.10
Dvinal [7]

Answer:

The real rate of return is 0.10%

Explanation:

For computing the real rate of return, we need to apply the formula which is shown below:

( 1 + nominal rate) = ( 1 + real rate) × (1 + inflation rate)

So,

The real rate = {(1 + nominal rate) ÷  (1 + inflation rate)} - 1

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