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3 years ago

Mr. Decker invested $20,000 in cash in his business. How does the company record the investment?

Business

1 answer:

Dvinal [7]3 years ago

4 0

Answer:

The company records the investment by the entry:

debit Cash and credit Owner's Equity

Explanation:

Mr. Decker invested $20,000 in cash in his new business. He is the Owner of the company.

In the case, the company that he invested received cash from Mr. Decker.

The company will record the increasing in cash and increasing in Owner's Equity account by the journal entry:

Debit Cash $20,000

Credit Owner's Equity $20,000

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The findings of a recent company survey at Rader Industries showed that employees are experiencing high levels of work stress. T

jenyasd209 [6]

Answer:

B) Employees' workload can be adjusted to accommodate their requests to go on leave.

E) Employees have been working on regular working days of the year

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4 years ago

Brown Company’s December 31, Year 1 balance sheet showed $1,800 cash, $200 accounts payable, $600 common stock, and $1,000 retai

never [62]

Answer:

Correct answer is $1,050 balance in retained earnings on the year 2 balance sheet

Explanation:

Retained earnings has a beginning amount of $1,000, then we incurred $1,700 revenue less the expense incurred in rent in the amount of $1,350 (1,800 / 12 months x 9 months). Then the company paid $300 dividends fro the year that is a deduction to the retained earnings balance.

Retained earnings beginning, $1,000

Add: Revenue 1,700

Less: Rent expense (expired portion) 1,350

Total $1,350

Less : Dividends 300

Total ending balance of retained earnings $1,050

*Prepaid rent balance at the end of year 2 is $450 ($1,800 - ($1,800 / 12 months x 9 months)

*Cash outflow from operating is not $1,700 because it is an inflow of cash from the revenue

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3 years ago

Which of the following protects the brokers commission

mrs_skeptik [129]

Answer:

A safety protection clause in a listing agreement entitles the real estate broker or agent to a commission after the listing expires or is canceled. This applies when the final buyer was brought to the deal by the broker.

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3 years ago

James Corporation is planning to issue bonds with a face value of $500,000 and a coupon rate of 6 percent. The bonds mature in 1

Anestetic [448]

Answer:

Case A $581,757.17

Case B $500,000.00

Case C $416,910.21

Explanation:

Current price of a bond

The market price of a bond can be computed using the pv formula in excel, which is given as :

=pv(rate,nper,pmt,fv)

Where rate is the yield to maturity on the bond divided by 2 since the bond in question is semi-annual interest paying bond i.e

Case A 4%/2=2%

Case B 6%/2=3%

Case C 8.5%/2=4.25%

The nper is the time to maturity of the bond multiplied by 2 for the same reason cited for yield to maturity i.e 10 years *2=20

The pmt is the semi-annual coupon interest payable by the bond i.e 6%/2*$500,000=$15,000

The fv is the future value of the bond given as $500,000

Case A

=-pv(2%,20,15000,500000)

Pv= 581,757.17

Case B

=-pv(3%,20,15000,500000)

PV=$$500,000.00

Case C

=-pv(4.25%,20,15000,500000)

PV=$416,910.21

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3 years ago

How does the market price of a good in a monopoly market compare with the market price of the same good in a perfectly competiti

Contact [7]

In a monopoly, prices are usually higher because there's no competition, whereas in a competitive market items that are not priced accordingly may never sell. For example, if you are the only bread-maker in town you can charge whatever you want - if people want bread they have to pay your prices, period. But in a competitive market where there are 20 other bread-makers, your prices have to remain competitive with the other 20 or no one will buy your bread.

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3 years ago