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Marrrta [24]
3 years ago
12

Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump

sum of $13,500. The common stock has a market price of $20 per share, and the preferred stock has a market price of $90 per share.
Prepare the journal entry to record the issuance.
Business
1 answer:
saw5 [17]3 years ago
4 0

Answer:

Dr Cash                                          $13,500

Cr Preferred stock                                                           $5,000

Cr Common stock                                                            $3,000

Cr Paid in capital in excess of par-preferred stock        $3,100

Cr Paid in capital in excess of par-common stock         $2,400

Explanation:

The market price can be used to apportion the amount attributable to each type of share as shown below

                                        Market value                   cost

Preferred share$90*100  $9000                          $8,100 *

Common stock$20*300   $6000                         $5,400 **

Total                                    $15,000                    $13,500

*$9000/$15000*$13500

**$6000/$15000*$13,500

The par value of preferred stock is $50*100=$5000

The par value of common stock is $10*300=$3000

Paid in capital in excess of par-preferred stock $3100($8100-$5000)

Paid in capital in excess of par-common stock $2,400($5400-$3000)

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Answer:

her total assets are $422,000

Explanation:

The computation of the total assets is shown below:

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3 years ago
Tatum Manufacturing recently opened a new facility in Hong Kong. The firm can most likely expect the Hong Kong government to ___
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The expectation of the Tatum Manufacturing firm from the Hong Kong government is to <u>ensure fair competition </u>with its competitors.

<h3>What is a manufacturing firm?</h3>

A manufacturing firm is a firm that engages in massive scale production of goods and commodities that uses physical labor and/or machinery to turn raw materials and parts, into finished goods or completed items.

The finished goods could be sold:

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The role of the Hong Kong government to Tatum Manufacturing Firm in as much they comply with the government regulations and taxes is for the government to ensure that there is fair competition for Tatum Firm with its competitors.

Learn more about a manufacturing firm here:

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2 years ago
True or False: A rebate and a discount are the same.
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False



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4 0
3 years ago
The chief executive of a large telecommunications company wanted to restructure the organization so product leaders would have m
katen-ka-za [31]

This kind of resistance from the product leaders is an example of resistance due to breaking routines. Furthermore, there are more types of resistance to change in an organization's culture & structure.

 

EXPLANATION:

Here is the list of types of resistance to change in an organization’s culture and structure:

• Fear of Failure

Intimidating cultural and structural alterations on the employee can make them doubt their competences. This self-doubt decreases self-confidence and weakens personal development and growth. The workers may resist such alterations without bearing in mind the potential profits of the proposed alterations, as a consequence. The low output might be understood before the workers finally learn and adjust to life with the alterations.

• Loss of Status

Cultural and structural alterations that intimidate to change dominant positions or remove jobs commonly cause strong resistance. Restructuring and reorganization of corporate may include managerial jobs elimination. Middle managers will oppose restructuring and any other agenda that decreases their power and the status they already possess in the organization.

• Non-Reinforcing Reward System

People resist when they do not predict positive prizes for altering their work routines. Workers presume a positive development in their work to voluntarily accept the alteration. A worker is unlikely to help an alteration that is recognized as longer work hours and enlarged pressure to perform.

• Incongruent Group Dynamics

Groups grow and apply conformity to a series of norms that lead the members' behavior. However, conformity to prevailing group norms may deject workers from receiving organizational change. Group norms that disagree with the desired changes need alteration, while the cultural and structural norms that succeed to enhance the organization need promotion.

• Breaking Routines

Individuals are creatures of habit and see it difficult to abort behavioral customs that the organization think through no longer suitable. They prefer comfort zones by remaining routine role patterns. Hence, people oppose cultural and structural changes that push them out of their comfort zones and need devoting more energy and time acquiring new role patterns.

 

LEARN MORE

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

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KEYWORDS : Resistance to change, organization’s culture and structure

Subject  : Business

Class  : 10-12

Sub-Chapter : Organizational Behavior

8 0
3 years ago
Transactions for Sheridan Company for the month of May are presented below. Prepare journal entries for each of these transactio
babymother [125]

Answer:

May 1

Cash $4,350 (debit)

Common Stock $4,350(credit)

May 3

Equipment $1,055 (debit)

Accounts Payable $1,055 (credit)

May 13

Rent Expense $394  (debit)

Cash $394  (credit)

May 21

Accounts Receivable : Noble Corp $530 (debit)

Service Revenue $530 (credit)

Explanation:

Note that, When stockholders invest cash in exchange of common stock, we recognize the increase in assets of cash and also the increase in equity item common stocks.

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3 years ago
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