Answer:
Explanation:
The journal entry is shown below:
On February 20
Organization expense A/c Dr $60,000
To Common Stock A/c $25,000 (1,000 shares × $25)
To Paid in capital in excess of par-Common Stock $35,000
(Being the organization expense is recorded and remaining balance is credited to the Paid in capital in excess of par-Common Stock)
Answer:
The explanation of the terms of the option contract change is below
Explanation:
a. Every call option contract will cover more shares
= 500 × 1.1
= 550
for computing the 1.1 (1 + 10%)
The strike price will be reduced for each share to
= 40 ÷ 1.1
= $36.364
b. Cash dividend would not adjust the terms of the contract but the contract value would decrease if it is an option to call and increase if it is an option to place
c. Each contract call option will cover more shares
= 500 × 4
= 2,000
The strike price will be reduced for each share to 40 ÷ 4
= $10
Answer:
present value = $9320.06
Explanation:
given data
cash flow 1 year C1 = $500
cash flow 2 year C2 = $1000
pay 3 year C3 = $800
interest rates r = 10 percent per year = 0.10
solution
we get here present value that is
present value = 
....................1
put here value and we will get
present value = 
present value = $9320.06
Answer:
since the price elasticity of demand for students is -4, the the price charged to them should be:
price = [-4 / (-4 + 1)] x $6 = (-4 / -3) x $6 = $8
since the price elasticity of demand for faculty is -2, the the price charged to them should be:
price = [-2 / (-2 + 1)] x $6 = (-2 / -1) x $6 = $12
Answer:
Sales return
Explanation:
Sales return when a customer is not satisfied with a product, refuses to accept the order and expects to receive back the whole amount of money he paid for it.
Tom's Textiles are at wrong here as they shipped the wrong material to a customer. The customer is allowed not to accept the order and all the money he paid must be reimbursed to him. The company should apologize for the mistake in a pleasant manner, as mistakes happen everyday and can be corrected quickly and efficiently.
