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3 years ago

How would the issuance of common stock for cash affect the accounting equation?

Business

1 answer:

shepuryov [24]3 years ago

3 0

Answer:

Explanation:

The journal entry to record the given transaction is shown below:

Cash A/c Dr XXXXX

To Common stock A/c XXXXX

(Being the issuance of the common stock is recorded)

The accounting equation is

Total Assets = Total liabilities + Stockholder equity

Cash Increased = No effect + Increased

Therefore, the cash account and the common stock is increased.

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1. A parent provides consulting services to its wholly-owned subsidiary during the year. The parent charged the subsidiary $600,

Fed [463]

Answer:

Explanation:

When consolidating parent and a wholly-owned subsidiary we aim to eliminate entries related to the inter company services. Since the subsidiary had recorded a debit to service expense when it was rendered, the adjusting entry would be a credit to the service expense amount by the same figure charged i.e. $600,000 in this case

6 0

3 years ago

Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs

pychu [463]

Answer:

Increase in income= $2,965.6

Explanation:

Giving the following information:

Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is:

Materials $ 12,036

Labor 35,400

Variable overhead 23,128

Fixed overhead 47,200

Total $117,764

McGee Corporation offers Gruden $4.91 per disc for 4,930 discs. If Gruden accepts the offer, its fixed overhead will increase from $47,200 to $53,700 due to the purchase of a new imprinting machine.

Total variable cost= (12,036 + 35,400 + 23,128)= 70,564

Unitary variable cost= 70,564/23,600= $2.99

Increase in fixed costs= $6,500

Increase in income= (4930*4.91) - (4930*2.99) - 6500= $2,965.6

8 0

3 years ago

Select all parts that should be included in a resume.

Lady_Fox [76]

Answer:

Objective , contact information, work experience, education and training, education and training, name.

4 0

3 years ago

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $14.00

romanna [79]

Answer:

The correct answer to the following question will be "$76,986".

Explanation:

Although the organization is reportedly going to pay $14.00 per unit, even before manufactured throughout the corporation, cost and save per unit will become the variation among current value as well as production costs without set rate. The cost of operating expenses will not be included to measure the gain because the idle resources of the company would be included and would not raise the fixed costs.

Therefore the cost differential would be as follows:

⇒ $Differential \ cost = (Current \ purchasing \ price-Manufacturing \ cost \ excluding \ fixed \ cost)\times 38,493$ On putting the values in the above formula, we get

⇒ $=(14-12)\times 38,493$

⇒ $=2\times 38,493$

⇒ $=76,986$

5 0

3 years ago

Inflation means:

NARA [144]

Answer:

The correct answer is 'Average prices are rising, but it is not certain what is happening to relative prices'.

Explanation:

Inflation is the overall increase in the prices of goods and services. It is a quantitative measure to understand the change in the prices. In general, inflation means average prices of goods and services are rising. It does not account for the relative prices so it is not certain what is happening to relative prices.

4 0

3 years ago

How would the issuance of common stock for cash affect the accounting​ equation?

How would the issuance of common stock for cash affect the accounting equation?