Answer: d. A price near $60
Explanation:
The Preferred Stock was selling at $56 then a notice was circulated that RMO would be calling the stock at a price of $60.
This $60 is more than the current $56 and so this will need to reflect in the price of the stock. The adjustment will cause the Preferred stock to start trading near $60 as traders will seek to take advantage of the impending call by buying at a lower price and thus making a bit of profit when the stock is called at $60. The market will adjust to this because the Preferred stock will be perceived as undervalued. A price closer to the Call price will therefore become the new price to properly value the stock.
D.All of the above
Because all of the above will cause it
Answer:
June 30 Dr. Cr.
Salary Expense $14,800
Salary Payable $14,800
Explanation:
Total Weekly Salary Expense = $37,000
Number of working days in week = 5 days
Salary expense per day = $37,000 / 5
Salary expense per day = $7,400
As 3 days lie in July and year end is June 30
Number of days Accrued = 5 - 3 = 2 days
Salary Expense Accrued = 2 x $7,400
Salary Expense Accrued = $14,800
Answer:
$1.86; $3.5
Explanation:
Total cost incurred:
= Cost received from departments + Addition of cost within its departments
= $10,000 + $27,200
= $37,200
Unit cost for materials:
= Total cost incurred ÷ equivalent units
= $37,200 ÷ 20,000
= $1.86
Total cost incurred:
= Cost received from departments + Addition of cost within its departments
= $10,000 + $53,000
= $63,000
Unit cost for Conversion:
= Total cost incurred ÷ equivalent units
= $63,000 ÷ 18,000
= $3.5
