1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DaniilM [7]
2 years ago
15

A corporation issued 5,000 shares of $20 par value common stock for $120,000 cash. A corporation issued 2,500 shares of no-par c

ommon stock to its promoters in exchange for their efforts, estimated to be worth $22,000. The stock has a $1 per share stated value. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $22,000. The stock has no stated value. A corporation issued 1,250 shares of $25 par value preferred stock for $53,250 cash.
Business
1 answer:
lapo4ka [179]2 years ago
6 0

Answer:

Journal Entries Transaction

1.

Dr. Cash                                                                    $120,000

Cr. Common stock                                                   $100,000

Cr. Paid-in capital excess of par, Common stock  $20,000

2.

Dr. Company expenses                                                        $22,000

Cr. Common stock, $1 stated value                                     $2,500

Cr. Paid-in-capital excess of stated value common stock $19,500

3.

Dr. Company expenses                 $22,000

Cr. Common stock, no-par value  $22,000

4.

Dr. Cash                                                                   $53,250

Cr. Preferred stock, $25 par value                         $31,250

Cr. Paid-in capital excess of par preferred stock  $22,000

Explanation:

1. The Excess of common stock and cash received will be recorded in the Paid in capital in excess of par value, common Stock account.

Common Stock, $20 Par Value = 5,000 shares × $20 per share = $100,000

Paid in capital in excess of par value, common Stock = $120,000 – $100,000 = $20,000

2.The Excess of common stock and cash received will be recorded in the Paid in capital in excess of stated value, common Stock account.

Common stock = $1 x 2,500 = $2,500

Paid-in capital in excess of stated value, common stock = $22,000 - $2,500 = $19,500

4. The Excess of common stock and cash received will be recorded in the Paid in capital in excess of par value, common Stock account.

Preferred Stock, $25 Par Value = 1,250 shares × $25 per share = $31,250

Paid in capital in excess of par value, preferred Stock = $53,250 – $31,250 = $22,000

You might be interested in
Using the logic of the two-sided search model, compare the impact on the economy of government spending on education and apprent
Inga [223]

Answer:

Recent changes in American public assistance programs have emphasized the role of work. Employer subsidies such as the Work Opportunity Tax Credit (WOTC) and the Welfare-to-Work Tax Credit (WtW) are designed to encourage employment by reimbursing employers for a portion of wages paid to certain welfare and food stamp recipients, among other groups. a simple dynamic search model of employment subsidies was developed and then test the model’s implications for the

employment outcomes of WOTC- and WtW-subsidized workers. The model predicts that subsidized workers will have higher rates of employment and higher wages than equally productive unsubsidized workers, and it highlights some possible effects of the subsidy on job tenure. predictions was tested using a unique administrative data set from the state of Wisconsin. These data provide information on demographic characteristics, employment histories, and WOTC and WtW participation for all welfare and food stamp recipients in the state for the years 1998 -2001. from those of eligibility.

The employment, wage, and job tenure effects of the WOTC and WtW using propensity score was estimated.

The estimation the effects of the Work Opportunity Tax Credit (WOTC) and the Welfare to Work Tax Credit (WtW) on employment outcomes of disadvantaged workers. These credits offer

subsidies to firms that hire individuals who may otherwise have difficulty finding jobs, such as certain welfare recipients, disadvantaged youth, and disabled individuals. Past work on previous employer-based credits found weak or even nonexistent employment effects, which resulted in the elimination of these

subsidies. The WOTC has been reauthorized four times since its implementation in 1996, and the WtW three times since its implementation in 1998, yet no study has carefully examined their effectiveness.

An analytical model of the WOTC and WtW were developed that allows workers from the same population to be paid different wages based on their value to the particular firms in which they are

employed. I also incorporate a binding minimum wage, which results in some long-term unemployment.

Finally, wages and employment status to change over time as employers learn about workers’ productivity in their firm. This dynamic element is essential to the model, since predictions about wage trajectories and job tenure cannot be made based on a static model. For example, concerns that

disadvantaged workers will end up in short-term, low-paying jobs cannot be addressed analytically without a model that allows changes in employment status over time. This gradual learning treats job matches as “experience goods” whose value cannot be determined ex ante.

Flinn (2003) introduces a minimum wage and investigates its effects on labor market outcomes and welfare in a search framework. Flinn incorporates the possibility of wage bargaining, and analyzes the effects of the minimum wage under different levels of worker bargaining power. Adding bargaining power to the model allows him to relax Jovanovic’s assumption that workers are always paid their (expected) marginal products; this is an important consideration if firms in certain markets are able to extract some rents from workers and pay wages closer to the reservation wage.

However, Flinn’s mode assumes that there is no uncertainty about productivity, even at the time of hire. In the context of the low wage labor market, in which employers might perceive some risks of hiring inexperienced workers, this assumption is restrictive. I therefore develop a model that maintains the bargaining and minimum wage

aspects of Flinn’s model but incorporates a simple form of uncertainty based on Jovanovic (1979), allowing job matches to be characterized as experience goods. This hybrid model is extended to include wage subsidies for a particular subset of workers.

7 0
3 years ago
According to the marginal productivity theory of income
Anna71 [15]

Answer:

The income received by an individual who supplies labor services equals the incremental benefit generated to the firm by the individual´s labor

Explanation:

The marginal productivity theory of income or wages states:  firms pay a salary that is equal to the extra benefit a (that is why is marginal; an extra unit in this case is an extra unit of labor) worker represents in output of production. In other words, if the firm employees a new worker, its salary would be equal to the extra output produced by him or her (marginal product of labor). Because of this, wages depend on the production function each firm has. The mathematical formula to get the marginal product of labor is: dF/dL, where F is the production function and L represent labor in it.

5 0
3 years ago
The demand for a product is inelastic with respond to price if:<br> a.consumers are
Step2247 [10]
Not all of the answer choices are here
5 0
3 years ago
At the end of 2021, Kingbird Co. has accounts receivable of $762,000 and an allowance for doubtful accounts of $22,520. On Janua
mixer [17]

Answer:

a. Debit Allowance for doubtful debt $4,398

   Credit Accounts receivable $4,398

   Being entries to write off receivable due from Madonna Inc.

b. $739,480  before and after the write-off

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

The realizable value of accounts receivable before the write off is the net of the accounts receivable and the allowance for doubtful debt

=  $762,000 - $22,520

= $739,480

This amount remains the same after the write off as the write off will reduce the balances in both the allowance for doubtful debt account and accounts receivable.

6 0
3 years ago
If a production function is getting flatter as number of workers hired increases from 12 to 13; then the total cost curve would
Paha777 [63]

Answer:

True

Explanation:

The production function is getting flatter since the marginal productivity of the 13th worker is lower than the marginal productivity of the 12th worker, e.g. the 12th worker produced 10 units per hour, the 13th worker only produces 9 units per hour.

The total cost curve will get steeper because the total cost of producing more goods will increase due to the lower marginal productivity of the 13th worker, e.g. since both workers earn $10 per hour, the units produced by the 12th worker will have a direct labor cost of $1 per unit, while the units produced by the 13th worker will have a direct labor cost of $1.11 per unit.

3 0
3 years ago
Other questions:
  • ToySpot, a soft toy manufacturer, receives an order of 250 teddy bears. For this particular order, its total inventory includes
    11·1 answer
  • Cycle counting A. involves shutting down production once per year to perform the annual inventory count. B. is a process by whic
    5·1 answer
  • Burt Inc. has a number of divisions, including the Indian Division, a producer of liquid pumps, and Maple Division, a manufactur
    8·1 answer
  • businessYou are a Slovak immigrant steelworker in Pennsylvania. What reasons would you have for joining a union? Describe your h
    10·1 answer
  • Sales revenues are usually considered earned when an order is received. cash is received from credit sales. adjusting entries ar
    12·1 answer
  • This year, Linda Moore earned a $112,000 salary and $2,200 interest income from a jumbo Certificate of Deposit.She recognized a
    9·1 answer
  • Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost $
    5·1 answer
  • The following are budgeted data: January February March Sales in units 16,000 22,000 19,000 Production in units 19,000 20,000 18
    9·1 answer
  • The following data are available relating to the performance of Seminole Fund and the market portfolio: Seminole Market Portfoli
    11·1 answer
  • What does the communication technique "slow down and be patient" mean
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!