Answer:
legal fees 15,000 debit
common stock 8,000 credit
paid-in in excess of par value 7,000 credit
Explanation:
the legal fee expense is for 15,000 so we will recognize the expense for that amount.
the stock have a face value of $1 but, the laywer agree to recieve up to 8,000 which means thre is an additoonal paid-in for 7,000 which is the deifference between the expense amount and the shares face value.
That will be recorded in the journal entry.
Answer:
e. Commitments for purchase orders are recorded as expenses.
Explanation:
The official statements of Governmental Accounting Standards Board (GASB) are the most superior authoritative rules for local and state government accounting in a country.
The following statements below are all correct in line with the Governmental Accounting Standards Board (GASB);
1. Governmental funds account for expenditures of financial resources rather than matching revenues and expenses.
2. The Encumbrances Outstanding account should be reversed and closed at the end of a fiscal year.
3. Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds.
4. A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives.
Also, commitments for purchase orders are recorded in the purchase order or an approved requisition.
Answer:
The answer is explained in the explanation section below
Explanation:
Solution
(1)At the market price of $8, the Demanded Quantity is 20 units per week , and the Quantity Supplied is 60 units.
(2) At this price Surplus exists.
Economic Surplus is a is a situation in which the quantity supplied is higher than the quantity demanded. This situation is also referred to as excess supply.
(3) At price $4 there is an exist shortage
At price $4 The quantity Supplied is 20 units and the Quantity Demanded is 60 units respectively. hence, at price $4 Demand is higher/greater than Supply.
(4) At a price of $6 per unit, the market equilibrium exists
Market equilibrium is a situation when the Quantity Demanded of a commodity by the consumer is the same to the respective Quantity Supplied of that commodity by the producers.
(5) )Quantity Demanded by the consumers is equal to the quantity supplied by the producers. In the equilibrium
At price $4 per unit , the quantity supplied by the producers is equal to 40 units and the quantity demanded by the consumers is equal to 40 units Thus the supplied quantity is equal to the demanded quantity this point.
Answer:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
Explanation:
The purpose of depreciation is to achieve the matching principle of accounting. That is, a company is attempting to match the historical cost of a productive asset to the revenues earned from using the asset. It is difficult to precisely match the contribution of the asset to a company's revenues, so the asset cost is designated to the years in which the asset is used.
The accounting entry is:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
Answer:
YTM = 10.53%
YTC = 14.36%
Explanation:
the yield to maturity (YTC) formula is:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {$45 + [($1,000 - $900)/20]} / [($1,000 + $900)/2] = $50 / $950 = 5.26 x 2 coupons per year = 10.53%
the yield to call (YTC) formula is:
YTC = {$45 + [($1,050 - $900)/6]} / [($1,050 + $900)/2] = $70 / $975 = 7.179 x 2 = 14.36%