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salantis [7]
3 years ago
9

On January 29, Quality Marble Inc., a marble contractor, issued for cash 75,000 shares of $10 par common stock at $23, and on Ma

y 31, it issued for cash 100,000 shares of $4 par preferred stock at $6. a.Illustrate the effects on the accounts and financial statements of the January 29 and May 31 transactions. b.What is the total amount invested (total paid-in capital) by all stockholders as of May 31?
Business
1 answer:
Mariulka [41]3 years ago
7 0

Answer:

The correct answer for option (a) is shown below, and for option (b) is $2,325,000

Explanation:

According to the scenario, the computation of the given data are as follows:

(a).

Jan 29   Cash  A/c Dr. $1,725,000            (75,000 × $23)

              To, Common stock A/c. $750,000    ( 75,000 × $10)

             To Share in excess of par value A/c $975,000   ( 75,000 × $23-$10)

May 31  Cash  A/c Dr. $600,000    ( 100,000 × $6)

            To, Preferred stock  A/c $400,000  ( 100,000 × $4)

           To, Preferred stock in excess of par value  A/c $200,000 ( 100,000 × $6 - $4)

(b). Total amount invested = $1,725,000 + $600,000

= $2,325,000

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Deanna purchased $24,000 worth of stock and paid her broker a 1% broker fee. She sold the stock when it increased to $29,100 thr
vazorg [7]

Answer:

Here:

Explanation:

Purchase price of shares = 24000

total purchase cost = price of shares bought + broker fees total purchase cost = 24000 + 0.01*24000 =24240

selling price of shares = 29100

total selling cost = price of shares sold - broker fees total selling cost = 29100 - 35 = 29065

Net proceeeds = total selling cost - total purchase cost Net proceeds = 29065 - 24240 = 4825

7 0
2 years ago
Stock may be described as:_________
nydimaria [60]

Answer:

a. an ownership interest in the corporation.

Explanation:

Stock refers to the stake of the owners of a corporation in the company.

It is sometimes referred to as shares or owner's equity and the owners of stock are called shareholders.

Stock therefore may be described as an ownership interest in the corporation represented as equity in the financial statement.

Option a is right.

5 0
3 years ago
In the context of Internet marketing, a _____ is a carefully selected group of consumers who agree to participate in an ongoing
Iteru [2.4K]

Answer: web community

Explanation:

Web community is also called an internet community, it is a virtual community whose members interact with each other primarily through the Internet.

7 0
3 years ago
The following stockholders' equity accounts arranged alphabetically are in the ledger of Wildhorse Co. at December 31, 2020.
Andrei [34K]

Answer:

Wildhorse Co.

The stockholders' equity section of the Balance Sheet at December 31, 2020

Preferred Stock (8%, $101 par, noncumulative)                      414,100

Paid-in Capital in Excess of Par-Preferred Stock                    48,700

Common Stock ($12 stated value)                                      1,776,000

Paid-in Capital in Excess of Stated Value-Common Stock 659,000

Treasury Stock-Common (7,900 shares)                             (96,000)

Retained Earnings                                                                 782,000

Total stockholders' equity                                               $3,583,800

Explanation:

a) Data:

Preferred Stock (8%, $101 par, noncumulative)                      414,100

Paid-in Capital in Excess of Par-Preferred Stock                    48,700

Common Stock ($12 stated value)                                      1,776,000

Paid-in Capital in Excess of Stated Value-Common Stock 659,000

Treasury Stock-Common (7,900 shares)                             (96,000)

Retained Earnings                                                                 782,000

Total stockholders' equity                                               $3,583,800

b) The major components of the stockholders' equity include the stock accounts, paid-in capital, retained earnings, and the treasury stock.  The stockholders' equity represents the difference between the assets and the liabilities of Wildhorse Co.  The equity section shows the capital contributions of Wildhorse stockholders and the accumulated retained profits.

5 0
3 years ago
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Andre45 [30]

Answer:

<em>Licensing </em>

Explanation:

Licensing <em>is a business agreement whereby one company gives authorization to another company to produce its product for a defined fee.</em>

Licensing allows you to immediately tap current manufacturing, marketing and distribution systems which may have been built by other companies for decades.

8 0
3 years ago
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