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
olga2289 [7]
3 years ago
8

On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 400,000 shares of $10 par common stock at $18, and on Nov

ember 19, it issued for cash 50,000 shares of preferred stock, $75 par at $80. a. Journalize the entries for October 31 and November 19. For a compound transaction, if an amount box does not require an entry, leave it blank.
Business
1 answer:
AnnyKZ [126]3 years ago
7 0

Answer and Explanation:

The journal entries are shown below:

On Oct 31

Cash (400,000 × $18) $7,200,000  

        To Common stock (400,000 × $10)  $4,000,000

         To Paid in capital in excess of par value - common stock  $3,200,000

(Being the issuance of the common stock is recorded)

For recording this we debited the cash as it increased the assets and credited the common stock and paid in capital as it also increased the stockholder equity

On Nov 19

Cash (50,000 × $80) $4,000,000  

          To Preferred stock  (50,000 × $75)  $3,750,000

          To Paid in capital in excess of par value - Preferred stock  $250,000

(Being the issuance of the preferred stock is recorded)

For recording this we debited the cash as it increased the assets and credited the common stock and paid in capital as it also increased the stockholder equity

You might be interested in
On June 10, Concord Corporation purchased $8,050 of merchandise on account from Sarasota Company, FOB shipping point, terms 1/10
mariarad [96]

Explanation:

The journal entries are as follows in the books of Concord Corporation

On June 10

Merchandise inventory A/c Dr $8,050

              To Account payable A/c $8,050

(Being the inventory is purchased on account)                

On June 11

Merchandise inventory A/c Dr $510

             To Cash A/c $510

(Being freight is paid by cash)

On June 12

Accounts payable A/c Dr $450

    To Merchandise Inventory A/c $450

(Being goods returned is recorded)

On June 19

Accounts payable A/c Dr $7,600     ($8,050 - $450)

    To Cash A/c $7,524              ($7,600 × 1%)

    To Merchandise Inventory A/c $76

(Being payment is recorded)

6 0
3 years ago
Pat Jones is a college student who is planning some networking opportunities for the current l semester. Pat wanted to look
DaniilM [7]

Answer:

1. I feel like Pat's new strategy isn't ethical. Pat doesn't pay for the suits; he just buys them and then returns them. Pat benefits, but the store he gets the suits from doesn't. In fact, they are harmed from this transaction because they are unable to have the suit for others to buy while Pat has it. There could be consequences with this strategy. For example, the suit might be damaged, and Pat won't be able to return it. Another problem is that others might find out about Pat's strategy, and they might view them as unprofessional. This is a problem for Pat since the reason Pat wore those suits was to look professional.

2. The stores are harmed from this transaction. They are unable to sell the suits to other buyers. The stores lose potential customers, so the stores lose potential money.

3. The companies should record that Pat had bought the suit only to return it the next day, so that they can act accordingly when Pat or someone else comes back to "buy" a suit.

Explanation:

7 0
3 years ago
What is the formula to work out profit
Nitella [24]

The main feature of this lesson is the equation P(x) = R(x) - C(x). Other important equations to remember are as follows: The breakeven point is when revenue equals cost, or when the profit is zero. Maximum profit will occur when marginal revenue equals marginal cost, or when the marginal profit is zero.

7 0
3 years ago
ignoring differences in the useful lives of investments when evaluating capital expenditure alternatives can distort present val
vodka [1.7K]

Answer:

Yes, it does.

Explanation:

It definitely impacts the present value analysis. If we are evaluating two proposals and we ignore the useful lives of the investments, then

  • The present values of the investment proposals will be inaccurate.
  • The cash flows might be inaccurate.
  • The discount factor to be used will also be inaccurate.
  • The overall results will be misleading.
  • The tax credits and balancing allowances and charges will also be inaccurate.
6 0
3 years ago
When Suddenlink Communications offers its customers a discount when they order their television, Internet, and phone service all
pishuonlain [190]

Answer:

Price bundling

Explanation:

Price bundling -

It is the practice of selling a combined package of goods and services at a much lower price , than selling it individually , is known as price bunding .

The practice is beneficial as it increases the sale of goods and services .

For example ,

package of TV channels , new mobile phone with some data plans , getting something free on the purchase of a particular commodity , is an example of bundle pricing .

Hence , the example shown in the question , is about price bundling .

5 0
3 years ago
Other questions:
  • A local bank pays 100% of its earnings out in dividends. If earnings continue to grow at 2% per year and the most recent annual
    13·1 answer
  • Assume that on 1/1/xx, a parent company acquired 90% interest in a subsidiary. The total fair value of the controlling and nonco
    5·1 answer
  • The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide inc
    14·1 answer
  • Marketing communicators should realize that other communication methods must receive careful consideration before _____ is autom
    14·1 answer
  • If the MPC is 0.8 and a component of AD, such as Investment, is increased by $5, then the maximum amount of change in income and
    8·1 answer
  • According to Hofstede, the extent to which subordinates accept a hierarchical system in a company is known as _______
    11·1 answer
  • On January 1, 2021, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cos
    5·1 answer
  • What are the advantages of being a member of World Trade Organization​
    11·1 answer
  • W, Inc. plans to have the same inventories at year end as was in the beginning of the year. The expected total fixed costs for t
    8·1 answer
  • 1) Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the gro
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!