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arsen [322]
3 years ago
10

Pharoah Company purchased machinery on January 1 at a list price of $270000, with credit terms 2/10, n/30. Payment was made with

in the discount period. Pharoah paid $79750 sales tax on the machinery and paid installation charges of $4800. Prior to installation, Pharoah paid $10900 to pour a concrete slab on which to place the machinery. What is the total cost of the new machinery
Business
1 answer:
Lina20 [59]3 years ago
5 0

Answer: $360,050

Explanation:

The total cost of a fixed asset refers to all the cash that was paid to acquire the asset, transport it and then install it.

Cost of the new machinery is therefore = Discounted cost price + Sales tax + Installation charges + Concrete slab

= (270,000 * (1 - 2%)) + 79,750 + 4,800 + 10,900

= 264,600 + 79,750 + 4,800 + 10,900

= $360,050

<em>Cost price was discounted by 2% as per the credit terms of 2/10 which means that there is a discount of 2% if the asset is paid for in 10 days. </em>

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Answer:

the capital structure weight of the common stock is 44.4%

Explanation:

The Weight of a Capital Source in Capital Structure is determined by expressing the Value of that Capital Source as a percentage of the Total Capital of the Company

<em>Capital Source                        Market Value                        Weight</em>

Common stock                        $630,700                                  44.04%

Preferred stock                        $ 27,900                                     1.95%

Bonds                                       $773,500                                  55.01%

Total                                        $1,432,000                               100.00%

CALCULATIONS OF THE MARKET VALUES ARE AS FOLLOWS

Common stock =   11,900 shares× $53 per share =           $630,700

Preferred stock=     300 shares× $93 per share   =             $ 27,900

Bonds               =     $2,000×110.5%× 350 bonds  =            $773,500

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3 years ago
Read 2 more answers
On October 1, 2016, Concord Corp. issued $924,000, 7%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pa
Advocard [28]

Answer:

Tabular summary is attached with this answer in MS EXCEL file.

Explanation:

The journal Entries for the Transactions are as follow

                                                                         Dr.               Cr.

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December 31 , 2016    Interest Expense  $16,170

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Interest Expense = $924,000 x 7% x 3/12 = $16,170

Download xlsx
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According to the reading, one benefit of having smaller groups is ____________________.
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In line with the reading, one gain of having smaller organizations are groups works more quickly and better participation amongst group members.

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Groups name such companies in-agencies. Fraternities, sororities, sports teams, and juvenile gangs are examples of in-agencies. members of an in-group frequently come to be competing with contributors of another group for diverse sorts of rewards. This different organization is referred to as an out-organization. a set is formed with at least members. typically, the number of institutional participants in a collection ranges from 15 to twenty participants. It will become tough to control a big institution. consequently, it's miles stated that the more individuals in a set the more complex it's far to control.

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The sum of the results produced by a team
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