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lutik1710 [3]
3 years ago
13

Rodriguez Corporation issues 6,000 shares of its common stock for $96,000 cash on February 20. Prepare journal entries to record

this event under each of the following separate situations. 1. The stock has a $14 par value. 2. The stock has neither par or stated value. 3. The stock has a $7 stated value.
Business
2 answers:
dusya [7]3 years ago
4 0

Answer:

The answers are given below;

Explanation:

The journal entries under each of following scenario are prepared as follows;

1. Cash         Dr.$96,000

   Common Stocks(6000*14)     Cr.$84,000

  Paid in capital in excess of par (96,000-84,000) Cr.$12,000

2.   Cash Dr. $96,000

      Common Stocks  Cr.$96,000

3. Cash    Dr.$96,000

  Common Stocks (7*6000)    Cr.$42,000

  Paid in capital in excess of par (96,000-42,000) Cr.$54,000

When there is no stated or par value,the entire amount of funds raised are credited in common stocks.

andrew-mc [135]3 years ago
4 0

Answer:

Journal entries for issue for cash proceeds of $96,000

Dr Cash                                                                                    $96,000

Cr Common stock par value($14*6000)                                                 $84,000

Cr Paid-in capital in excess of par value($96,000-$84,000)                $12,000

The journal entries with neither par or stated value

Dr Cash                                                                                  $96,000

Cr Common stock with neither par or stated value                            $96,000

Journal entries  when stated value is $7

Dr Cash                                                                                 $96,000

Cr Common stock at stated value of $7($7*6000)                           $42,000

Cr Paid-in capital in excess of stated value($96,000-$42,000)      $52,000

Explanation:

Cash is debited in all cases as the more cash was received,an increase in asset is normally debited to the relevant asset account.

Common stock and paid-in capital in excess par were credited because they shows the increase in amount owed by the business to their owners.

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Process departmentalization

Explanation:

Departmentalization

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3 years ago
When British regulators were forced to suspend the license of a flu vaccine plant in Liverpool operated by the Chiron Corporatio
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Explanation:

The answer to this question is contained in the attachment. The graph has been used to explain the solution.

A. As license got suspended price rose to p1 as quantity fell from q to q1.

So quantity decreased and price rose.

B. The area market csps, D ands cs were consumer surpluses , after the decrease in amount of vaccines in the market, consumer surplus decreased to area cs, csps became part of producer surplus. Triangle d is the deadweight loss caused by fall in quantity.

Ps and d' are initial producer surplus. Producer surplus after decrease in vaccine can be seen in ps and csps. D' is the dead weight loss as price decreases.

4 0
2 years ago
____________________An asset that lacks this attribute may take a long time to sell or be collected (so that it can be converted
g100num [7]

Answer:

Liquidity

Explanation:

Liquidity is the degree to which an asset can be converted to cash.  Assets that can easily be converted are described as liquid assets and include stocks and bonds.

Illiquid assets are not easy to sell. These assets may take a long time to sell or may be sold at a much cheaper price than the purchase price in order to make a quick sale. These include real estate, motor vehicles etc.

4 0
3 years ago
Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $39,360 and is paid semimonthly. He
serious [3.7K]

Answer:

  • Federal Income tax ⇒ $80
  • FICA ⇒ $125.46
  • State income tax ⇒ $52.97
  • Local deduction - Clark County Income tax ⇒ $29.52

Explanation:

Brent gets paid semi-monthly so his pay per period is:

= 39,360 / (12 months *2)

= $1,640

Based on the table therefore, his federal tax is:

= $80

This figure is based on the intersection between income of $1,640 and 3 withholding allowances.

FICA tax rate is 7.65% so his FICA tax is:

= 1,640 * 7.65%

= $125.46

State income tax = $52.97

Local deduction - Clark County Income tax = $29.52

Total deductions:

= Federal tax + FICA + State income tax + Clark County income tax

= 80 + 125.46 + 52.97 + 29.52

= $287.95

3 0
3 years ago
Due to the limited range of input and interaction among participants, few companies believe that a joint application development
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Answer:

It is false that Joint Application Development (JAD) group produces the best definition of a new system.

Explanation:

JAD group does not produce the best definition of a new system, here is why:

• JAD system incorporates participants with different opinions. Different opinions within the team make it difficult to align goals and maintain focus

• Depending on the size of the project, JAD may require a longer time that will put a strain on the execution of a project

• JAD is too expensive and can be cumbersome/difficult if group is too large

• JAD produces a details and information that is a tentative model not a complete development methodology.

5 0
3 years ago
Read 2 more answers
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