Answer:
2041 shares
Explanation:
Maximum amount for investment = $ 50 000 / 70 % = $ 71428.571
maximum number of shares = $ 71428.571 / $ 35 = 2040.812 approx 2041 shares
Answer: Three items will appear being;
2. Sale of delivery truck at book value
5. Sale of a debt security held as an available-for-sale investment
6. Collection of loan receivable.
Explanation:
The Investment Section of the Cash Flow Statement contains activities related to investment such as the buying or selling of fixed assets and the buying or selling of other company stocks or bonds.
Out of the above therefore, there are 3 activities that would fall under this section of the Cash Flow Statement.
They are;
2. Sale of delivery truck at book value.
- This refers to the sale of a Fixed asset and as such it goes to the investment section.
5. Sale of a debt security held as an available-for-sale investment.
- As a debt security of another firm that was considered available for sale, this goes to the Investment Section as well.
6. Collection of loan receivable.
- Finally, collection of loan receivable means that the company loaned money to another company making it an investment related cash inflow as it is a long term Investment income source.
Answer:
- 8 months for the first interest
- 6 months for the second
Explanation:
The interest is to be paid semi-annually which means that it accrues for 6 months. However, the bond was issued on May 1, 2020 which is 8 months before the first interest payment on January 1, 2021 so the January payment will have to cover for those months as interest starts to build immediately the bond is purchased.
The second payment on July 1, 2021 will cover the period of 6 months between January 1 and July 1, 2021.
Answer:
- $17,600
Explanation:
The computation of the net decrease in cash during the month is shown below:
= $40,600 - $17,400 - $30,200 - $2,300 - $8,300
= - $17,600
After calculating the items which are presented in the column 1 represent the net decrease in cash for $17,600 amount.
The net decrease in cash represents an outflow of cash. In this, the chances of loss may be higher than the loss.
Answer:
Date Account titles and Explanation Debit Credit
Apr 1 Cash $679,900
Common stock $261,500
(52,300*5)
Paid in common stock in excess of par $418,400
(52,300*$13-$5)
(To record common stock issued)
Apr 19 Organisation expenses $28,900
Common stock $9,000
(1800*5)
Paid in common stock in excess of par $19,900
(To record issuance of comm1,100on stock for attorney.s fees)
Apr 19 Cash (1,100*$6) $6,600
Preferred stock (1,100*$1) $1,100
Paid in preferred capital in excess of par $5,500
(To record common preferred stock for cash)
