1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lena [83]
3 years ago
5

Show Me How On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of Edwards Co. common s

tock at $50 plus commission charges of $120. On June 1, a cash dividend of $1.40 per share was received. On November 12, 4,000 shares were sold at $62 less commission charges of $100.Using the cost method, journalize the entries for (a) the purchase of stock, (b) the receipt of dividends, and (c) the sale of 4,000 shares.
Business
1 answer:
Cerrena [4.2K]3 years ago
8 0

Answer:

Explanation:

The journal entries are shown below:

1.  Investment in shares of Edwards Co A/c Dr $600,120

              To Cash A/c                                                              $600,120

(Being the purchase of stock is made)

The investment is computed below:

= Number of shares acquired × par value of common stock + commission charges

= 12,000 shares × $50 + $120

= $600,120

2. Cash A/c Dr $16,800

         To Dividend A/c $16,800

(Being dividend received is recorded)

The receipt of dividend is shown below:

=  Number of shares × cash dividend per share

= 12,000 shares × $1.40

= $16,800

3.  Cash A/c Dr $247,900

             To Profit on sale $47,860

             To Investment in shares of Edwards Co A/c $200,040

(Being sale of shares is recorded and the remaining amount is credited to the profit)

The computation of this above entry is shown below:

Cash Account = Number of shares sold  × par value of common stock - commission charges

= $4,000 × $62 - $100

= $247,900

Profit on sale = (Purchase of stock ÷  Number of shares acquired) × Number of shares sold

= ($600,120 ÷ 12,000) shares × 4,000 shares

= $200,040

You might be interested in
A math formula in economics
krok68 [10]
It's C because 1-.15 is .85 then 1/.85 rounds to 1.18
5 0
3 years ago
Dividing a diverse market into groups of customers who share similar traits or characteristics is the process known as:
victus00 [196]

Answer:

Market segmentation

Explanation:

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes.

5 0
3 years ago
One year ago, ABC Widgets, Inc., funded an expansion to its manufacturing facilities by issuing a 20-year first mortgage bond. T
MA_775_DIABLO [31]

Answer:

Current yield = 0.05238 or 5.238% rounded off to 5.24%

option B is the correct answer

Explanation:

The current yield is the return on investment in form of interest or dividend expressed as a percentage of the current market value of the instrument. Thus the formula for current yield on a bond will be,

Current yield = Interest per year / Current market price

Assuming that the value of bond is 100. The interest or coupon payment on bond will be = 100 * 5.5% = $5.5 per annum

Current yield = 5.5 / 105 = 0.05238 or 5.238% rounded off to 5.24%

5 0
3 years ago
Setsuko wants to start a business of her own. She does not have enough savings, so she approaches her bank to obtain short-term
Arisa [49]

The type of funding obtained by Setsuko is the line of credit.

The following information should be relevant for the line of credit:

  • It is treated as a flexible loan.
  • It is an amount of money i.e. defined and can be accessed whenever it is needed and after that, it could be repaid instant or over a period of time.
  • It is for a short period of time.

Since in the given situation, it is mentioned that:

  • Setsuko obtained the funds for the short term.
  • Bank lent her $10,000.

Therefore we can conclude that the type of funding obtained by Setsuko is the line of credit.

Learn more about the line of credit here: brainly.com/question/17937007

3 0
3 years ago
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term favorable perce
AlladinOne [14]

The term "customer relationship management"is the process of identifying prospective buyers while understanding them to build a long-term favorable perceptions of the firm

<h2>What is customer relationship management?</h2>

CRM means a business process that helps in understanding the behavior of customers for purpose of serving them in best possible way.

In conclusion, the "customer relationship management"is the process of identifying prospective buyers while understanding them to build a long-term favorable perceptions of the firm.

Read more about CRM

<em>brainly.com/question/4310845</em>

4 0
2 years ago
Other questions:
  • Kim, chris, and beth are all partners in a cosmetics firm. kim is leaving the partnership and wants to sell her shares of the bu
    15·1 answer
  • Students who are trying to raise funds have an agreement with a local pizza chain. The chain has agreed to sell them pizzas at a
    11·1 answer
  • What should a manager ideally do after implementing a solution to a given work-related problem?
    5·2 answers
  • Which kind of decisions involving resources must producers of goods and services make? ECONOMICS.
    8·2 answers
  • Jeanne and Mark are buying a home. They've been told their mortgage payment will be $1,072 per month. There's also an additional
    13·1 answer
  • Which of the following tests can be used to detect register disbursement schemes?
    5·1 answer
  • Analysis reveals that a company had a net increase in cash of $22.420 for the current year. Net cash provided by operating activ
    14·1 answer
  • Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.
    12·1 answer
  • A federal grant to states to assist in the building of new public schools is an example of a ________ grant.
    10·1 answer
  • Answer it ....the question is in the pic​
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!