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3 years ago

For each of the unrelated transactions described below, present the entries required to record each transaction.

Business

1 answer:

Mars2501 [29]3 years ago

6 0

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

1. Cash Dr, $19,618,250

Discount on bonds payable Dr, $606,750

To Bonds payable $20,225,000

(Being Bonds issued is recorded)

Working Note:-

Cash = ($20,225,000 × (97 ÷ 100)

= $19,618,250

So, the bonds has been issued a discount. The par value of the bonds is 100.

2. Cash Dr, $19,416,000

Discount on bonds payable Dr, $1,820,250

To Bonds payable $20,225,000

To Paid in capital share warrants $1,011,250

(Being bonds issued is recorded)

Working Note:-

The Value of bonds issued at a discount

So, value of bonds = ($20,225,000 × ($96 ÷ $100)

= $19,416,000

Now, Value of warrants = ($20,225,000 ÷ 100) × $5

= $1,011,250

Total value of bonds including warrants = Value of bonds + Value of warrants

= $19,416,000 + $1,011,250

= $21,236,250

3. Debt conversion expense Dr, $78,300

Bonds payable Dr, $10,342,000

To discount payable $58,600

To common stock $1,034,200

To paid in capital in excess

of common stock $9,249,200

To cash $78,300

(Being debt conversion is recorded)

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On January 1, 2014, Dodd, Inc., declared a 15% stock dividend on its common stock when the fair value of the common stock was $3

jeka94

Answer: $540,000

Explanation:

Given that,

Fair value of the common stock = $30 per share

Common stock, $10 par value, authorized 200,000 shares;

issued and outstanding 120,000 shares = $1,200,000

Additional paid-in capital on common stock = $150,000

Retained earnings = $700,000

Total stockholders' equity = $2,050,000

Declared a dividend of 15%:

= 120,000 × $30 × 15%

= $540,000

Since, dividends are paid out Retained earnings. Therefore, retained earnings will decrease by an amount of $540,000.

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3 years ago

Rahls issues stock to investors for $20,000, and has $5,000 of net income in its first year of operations. During Year 2, Rahls

Eva8 [605]

Answer:

The balance in stockholders' equity at the end of year 2 is $31,000

Explanation:

For computing the balance in stockholder equity at the end of year 2, first, we have to compute the balance for year 1 which is shown below:

Year 1 equity balance = Issue of stock + Net income

= $20,000 + $5,000

= $25,000

Now, year 2 balance would equal to

= Year 1 balance + Net income - Dividend paid

= $25,000 + $10,000 - $4,000

= $31,000

Hence, the balance in stockholders' equity at the end of year 2 is $31,000

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3 years ago

Is money the root of all evil?

SCORPION-xisa [38]

Answer:

Explanation:

the lo.ve of mone.y is a root of all kinds of e.v.il” or simply “for the love of money is the root of all e.vil.” Not m.oney itself, but the love of money. That's a key dis.tin.ction. Money itself is neither good nor e.vil.

hope it helps

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2 years ago

Read 2 more answers

Which of Ahmad’s expenses will most likely be ranked as variable expenses? Check all that apply.

stepan [7]

Answer:

The correct answers would be options B, C, E and F.

Explanation:

Variable expenses are the expenses that change with the increase or decrease of the use of product or service. Variable expenses are usually unpredictable.

In the given question, the discretionary spending, groceries, electricity bill and water bill are variable expenses, as they will increase or decrease with the use of them. For example, the more electricity you consume, the more bill you get and vice versa. Similarly, the more items you purchase in the grocery, the more you will have to pay and vice versa.

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3 years ago

2-3 personal experience of exploitation as a consumer

Scilla [17]

Answer:

<u>Explanation</u>:

Exploitation often involves a denial of an individual's right (in this case a consumer's right).

Consumers are often exploited in this three areas:

Poor quality standard: For example, one may purchase an electronic device, which in most cases the quality level is determined only after using the product and then discover that the product has failed to meet expectations like performance failure.

High Prices: This is often happens when a consumer isn't aware of the average price of a particular product and may be the taken advantage of by the seller.

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3 years ago