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padilas [110]
3 years ago
13

When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 share of $10 par value common sto

ck. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 8,500 shares of stock at a price of $16 per share.
The entry to record the above transaction would include a
A. debit to Cash for $85,000
B. credit to Common Stock for $136,000
C. credit to Paid in Capital in Excess of Par for $51,000
D. debit to Common Stock for $85,000
Business
1 answer:
SOVA2 [1]3 years ago
8 0

Answer:

Option (C) is correct.

Explanation:

The Journal entry is as follows:

Cash A/c (8,500 × $16) Dr. $136,000

      To  Common stock  $85,000          

       To Paid in Capital in Excess of Par $51,000

Workings:

Common stock:

= Shares of stock × Par value of stock

= 8,500 shares × $10

= $85,000

Paid in Capital in Excess of Par:

= 8,500 shares × ($16 - $10)

= 8,500 shares × $6

= $51,000

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Answer and Explanation:

The computation of the effect on real GDP is shown below:

change in GDP is

= Multiplier × change in investment

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3 years ago
A conventional peg refers to. Multiple Choice where the exchange rate remains within a narrow margin of 2 percent relative to a
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A conventional peg refers to when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows.

for better understanding lets explain what conventional peg means

  • conventional peg as related to when country formally (de jure) pinpoint their own currency at a fixed rate to the currency of another said country example is, from the currencies of major trading or financial partners and weights showing on the distribution of trade in different geographical zones
  • The known backbone or anchor currency or basket weights are public or notified to the IMF and a country authorities are able to maintain the fixed parity through direct intervention

From the above, we can therefore say that the answer A conventional peg refers to when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows is correct.

learn more about exchange rates from:

brainly.com/question/21384395

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3 years ago
When banks provide information about savings accounts, they typically quote the interest rates they offer (e.g. 1%) on a...
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Answer:

D. Annual basis

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A target audience is important when creating a multimedia presentation because you want to attract attention, but it is impossible to attract everyone’s attention. You need to include features that will appeal to your target audience. These features may include photos, music or topics that will appeal to a particular group.

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Answer:

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