Answer:
The Journal entry is as follows:
Land A/c Dr. $245,000
Building A/c Dr. $374,000
To Common stock, $8 par value $232,000
To Paid-in capital in excess of par value, common stock $387,000
(To record issuance of the stock in exchange for the land and building)
Workings:
Common stock = $8 × 29,000 shares
= $232,000
Answer:
$12,000
Explanation:
Given:
Payroll(7 days) = $20,000
Number of work day in week = 5 Days
Computation:
Per day Payroll = Weekly payroll / Number of work day in week
Per day Payroll = $20,000 / 5
Per day Payroll = $4,000
Deductible Days = Monday + Tuesday + Wednesday
Deductible Days = 3 days (work day in week)
So, Debited Amount = Number of days x payroll amount per day
= 3 x $4000
= $12,000
Answer:
B. Advertising Expense 500 Prepaid Advertising 500
Explanation:
The journal entry is shown below:
1. Prepaid Advertising A/c Dr $2,000
To Cash A/c $2,000
(Being the prepaid advertising is paid)
2. Advertisement expense A/c Dr $500
To Prepaid Advertising A/c $500
(Being the adjusting entry is recorded)
Since for three-fourth is received, so one-fourth is still pending which would be
= $2,000 - $1,500 ($2,000 × 3 ÷ 4)
= $500
Answer: Spontaneous debt financing plus bank loans plus owners investment plus retained earnings.
Explanation: It is the general rule in accounting that assets of any business entity will always be equal to the capital invested from different sources and the liabilities taken over by the business for funds. Debt, owners equity and retained earnings are a source of capital whereas bank loans is a liability .
Answer:
differentiated products.
Explanation:
An oligopoly occurs when a few large firms dominate a market and they aim to maximise profit. The action of one firm has significant effect on the market, so the firm's are interdependent.
There are high barriers to entry including use of government liscences, patents, economies of scale, and actions taken by firms to discourage entry into the market.
However differentiation of products is not a necessary condition for oligopoly. Products can be homogenous or differentiated.