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3 years ago

The stockholders' equity of TVX Company at the beginning of the day on February 5 follows.

Business

1 answer:

Monica [59]3 years ago

4 0

Answer:

TVX Company

Stockholders Equity Section of the Balance Sheet, February 28

Common stock $632,400

Paid in capital in excess of par value, Common stock $449,040

Retained earnings $513,560

Total Stockholders Equity $1,595,000

Workings

Common Stock

= Common Stock + Dividends Declared

= 620,000 + ( 2% * 62,000 shares * $10 par value)

= 620,000 + 12,400

= $632,400

Paid in capital in excess of par value, Common stock

Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.

= Balance + Dividends Declared

= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)

= 423,000 + 26,040

= $449,040

Retained earnings

= Retained Earnings - Dividends distributed

= 552,000 - (2% * 62,000 * $31)

= 552,000 - $38,440

= $513,560

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Both interest bearing and noninterest bearing notes bear interest. A. True B. False

Veronika [31]

The statement "Both interest bearing and noninterest bearing notes bear interest." is true.

An interest-bearing note bears interest. The interest on a non-interest-bearing note is subtracted from the note's principal. So, the statement is true.

An interest-bearing note is a sum of money that a lender lends to a borrower, with interest accruing in line with the conditions of the contract.

A non-interest bearing note is a loan for which the borrower is not legally required "to pay the lender any interest" at all.

Both kinds of notes bear interest, hence the term "noninterest bearing" is misleading. Interest is deducted from a noninterest bearing note at the time the loan is made.

To learn more about noninterest bearing notes here

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3 0

2 years ago

Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only on

Vika [28.1K]

Answer:

CANE COMPANY

a. total amount of traceable fixed manufacturing overhead

Alpha = $19*105,000 = $1,995,000

Beta = $21*105,000 = $2,205,000

b. Company's total amount of common fixed expenses =

Aplha = $18*105,000 = $1,890,000

Beta = $13* 105,000 = $1,365,000

Total = $3,255,000

c. Increase in profit as result of accepting the offer = additional contribution * additional unit sold

= $14*13,000

= $182,000

additional contribution =$92 - (30 + 23 + 10 + 15)

d. Decrease in profit = loss of contribution * unit sold

= -13 *4000

= ($52,000)

loss of contribution = 42 -( 18+ 16 +8+13)

Explanation:

3 0

4 years ago

On December 1, Macy Company sold merchandise with a selling price of $9,000 on account to Mrs. Jorgensen, with terms 4/10, n/30.

Marysya12 [62]

Answer:

B) Debit Sales Revenue for $7,968, debit Sales Discounts for $332, and credit Accounts Receivable for $8,300.

Explanation:

The journal entry is shown below:

Cash A/c Dr $7,968

Sales Discount A/c Dr $332

To Accounts receivable $8,300

(Being cash received recorded)

The computation of the account receivable

= Credit sales - returned goods

= $9,000 - $700

= $8,300

And, the discount would be

= Accounts receivable × percentage given

= $8,300 × 4%

= $332

The remaining amount would be credited to the cash account.

8 0

3 years ago

Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 that carry a one-year warranty against manufacture

blagie [28]

Answer:Woodmier journal $

1. Date

2021

Warranty expenses Dr 90,000

Warranty liability Cr. 90,000

Narration. Amount of warranty incurred for the year.

2021

Warranty liability Dr 90,000

Bank/Cash. Cr. 90,000

Narration. Payment of warranty expenditures.

2. No entry require

Explanation:

The warranty expenses since is a period of one year can be accounted for at the end of the year without requirements for provision at the beginning of the year. The actual warranty is debited to the income statement and the liability recognized as a creditor until payment.

The discontinuation of the sales of the product in 2021 will not affect the already incurred warranty liability and the account posting thereon in the following years.

8 0

3 years ago

(consider this) consumers might leave a fast-food restaurant without being served because:

Liula [17]

The reason why consumers leave without being served because the consumers must have felt mad or upset about the service being served to them-- causing them to leave their orders or to even wait for their time for their turn of having to get their menu taken.

4 0

4 years ago