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
SOVA2 [1]
3 years ago
9

If a corporation issued 25,000 shares of $1.00 par common stock for $2.85 per share. The appropriate journal entry for the IPO i

s:
a) Date Account
1-Jan Cash $25,000
Common Stock $25,000
b) Date Account
1-Jan Cash $71,250
Common Stock $71,250
c) Date Account
1-Jan Cash $25,000
Additional Paid in Capital $46,250
Common Stock $71,250
d) Date Account
1-Jan Cash $71,250
Additional Paid in Capital $46,250
Common Stock $25,000
Business
1 answer:
Vika [28.1K]3 years ago
5 0

Answer:

The correct answer is Option D.

Explanation:

Common stock is a share issued by a company to the public. The public enjoy dividend on their common stock when the company pays dividends.

Based on the question, the par value of the common stock is 25,000 shares x $1.00 = $25,000 while the total cash collected by the company would be 25,000 shares x $2.85 = $71,250 and the appropriate entries will be:

Debit Cash $71,250

Credit Additional Paid in Capital $46,250

Credit Common Stock $25,000

<em>(Issuance of common stock)</em>

You might be interested in
3. Company with single taxation is called?
bagirrra123 [75]

Answer:

(a) S-Type

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The different types of tax include the following;

1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.

3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.

A company with single taxation is called S-Type i.e sole proprietorship.

Basically, a sole proprietorship business is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax.

4 0
3 years ago
You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have been
Lisa [10]

Answer:

CAPM=5.6\%

Explanation:

as it is said we must apply the CAPM model, so we have:

CAPM=r_{f}+\beta (E\(r_{m})-r_{f} )

where CAPM is the capital asset pricing model, r_{f} is the risk free of the market, \beta is the relation between the market benchmark and an asset return, and E(r_{m}) is the  expected return of an asset

CAPM=0.041+1.3(0.0525-0.041)

CAPM=5.6\%

8 0
3 years ago
What is the value of a zero-coupon bond with a par value of $1,000 and a yield to maturity of 6.60%? The bond has 19 years to ma
stepan [7]

Answer:

$296.90

Explanation:

For computing the value of the zero coupon bond we need to apply the present value formula i.e to be shown in the attachment below:

Given that,  

Future value = $1,000

Rate of interest = 6.60%

NPER = 19 years

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the value of zero coupon bond is would be $296.90

6 0
3 years ago
The original cost of an item of inventory is above its replacement cost. The item’s replacement cost is below its net realizable
creativ13 [48]
The answer would be original cost
5 0
3 years ago
What are the elements of market research?
dem82 [27]
Everything from Bed Bath and Beyond to your local Internet browser
8 0
3 years ago
Other questions:
  • The Graber Corporation’s common stock has a beta of 1.8. If the risk-free rate is 5.8 percent and the expected return on the mar
    5·1 answer
  • The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account. This error would ca
    14·1 answer
  • If an owner of a copy center is interested in knowing which of her employees can make the most copies in one hour, she wants to
    9·2 answers
  • ACME Confetti Corporation needs to finance $20 million for a plant expansion building project. They've decided to issue common s
    6·1 answer
  • Labor and employers agreed to a new ""social contract"" that included all of the following provisions EXCEPT:
    6·1 answer
  • Dell Technologies Inc. Is an integrated IT infrastructure company that brings together hardware, software, and services. Some of
    14·1 answer
  • Which of the following statements is CORRECT?
    9·1 answer
  • Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional
    7·1 answer
  • Which risk factors would the nurse teach a client about to prevent pelvic inflammatory disease (pid)? (select all that apply.)
    11·1 answer
  • Management moving production or other parts of the company's value chain to countries where wages are lower is an example of ___
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!