Explanation:
The journal entry is as follows:
Land Dr $70,000
Additional paid in capital $5,000
To Common stock $75,000
(Being the common stock is issued in exchanged for cash)
The computation of the additional paid in capital is shown below:
= Common stock - the appraised value of land
where,
The common stock = 750 shares × $100 = $75,000
And, the appraised value of land is $70,000
So, the remaining balance is
= $75,000 - $70,000
= $5,000
The $5,000 would be recorded as an additional paid in capital
Answer:
Please check the info below
Explanation:
1. For Osaka
Margin = Net Operating Income / Sales *100
= $ 792000 / $9900000 *100
= 8.00%
Turnover = Sales / Average Operating Assets * 100
= $ 9900000 / $ 2475000 * 100
= 4.00%
ROI = Margin * Turnover
= 8% *4 %
= 32.00%
Hence the correct answer is 32.00%
For Yokohama :
Margin = Net Operating Income / Sales *100
= $ 2900000 / $ 29000000*100
= 10.00%
Turnover = Sales / Average Operating Assets * 100
= $ 29000000 / $ 14500000* 100
= 2.00%
ROI = Margin * Turnover
= 10% *2 %
= 20.00%
Hence the correct answer is 20.00%
2. The correct answer is
Osaka = $ 371,250
Yokohama = $ 435,000
3. The correct answer is No
This is because since Osaka has a higher ROI, Yokohama’s greater amount of residual income is not an indication that it is better managed
Answer:
Explanation:
Small Business Development Centers (SBDCs) provide business-related assistance and knowledge to help entrepreneurs start, run, and grow their businesses.
Answer:
Cost of equity= 8.0%
Explanation:
<em>Cost of equity can be ascertained using the dividend valuation model. The model states that the price of a stock is the present value of future dividends discounted at the required rate of return.</em>
Cost of equity (Ke) =( Do( 1+g)/P ) + g
g - 2.2%, P - 36.72, D - 2.18
Ke = (2.18 ×(1+0.022)) /38.72 + 0.022 ) × 100
= 0.07954 × 100
= 8.0%
Cost of equity = 8.0%
Answer:
Oglivie Corp.'s assets (cash account) will increase be $230,000 and its equity (common stock account) will also increase by $230,000.
Every time a company issues stock and sells them, both its assets and equity have to increase in order to keep a balance in the balance sheet. Since Oglivie's stock are no-par, all of the money received should be included in the common stock account.
