Answer:
$48,800
Explanation:
Ratio = 2:3
Total investment:
= Benson capital + Orton capital + Ramsey capital
= $60,000 + $40,000 + $20,000
= $120,000
Total Equity of Ramsey:
= 40% of Total investment
= 0.4 × $120,000
= $48,000
Old partners contribution:
= Equity of Ramsey - Ramsey capital
= $48,000 - $20,000
= $28,000
Benson’s capital balance after admitting Ramsey:
= Benson’s capital - Old partners contribution(2 ÷ 5)
= $60,000 - [$28,000 × (2 ÷ 5)]
= $60,000 - $11,200
= $48,800
Answer:
c. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.
Explanation:
The journal entry for issuance of the common stock for cash is shown below:
Cash A/c Dr $70,000
To Common stock $50,000 (5,000 shares × $10)
To Additional paid in capital A/c - Common stock A/c $20,000
(Being the common stock is issued for cash)
While recording this entry it increased the assets so the cash account is debited while at the same time it also increased the common stock for $50,000 and the additional paid in capital in excess of par value i.e $20,000 so both these account are credited
Answer:
d. financing activities section
Explanation:
cash investment made by the owner and their withdrawals will be in the financing activities section
On the financing activities, the accounting does a detail ofthe origin of funds which paid for the assets. These funds could be from owners or lenders.
Therefore, the equity transactions are included in the financing activities sections
From the owner point of view, it is an investment. But, we must remember that the owner and te company are different entities. For the company it is financiation
Answer and Explanation:
The preparation of the cash budget for the month of March ended is presented below:
Cash Budget
Particulars Amount ($)
Opening Cash Balance 72,000
Add: Cash Receipts from Sales 300,000
Total Cash Available 372,000
Less:
Cash Payments
Purchases 140,000
Salaries 80,000
Cash Expenses 45,000
Repayment of Bank Loan 20,000
Total Payments -285,000
Closing Cash Balance 87,000
We simply deduct the all payments from the total cash available so that the ending balance of cash could come
With face value equal to $ 1000, present value equal to $ 1,065, we get nper = 16.5 * 2 = 33. Rate(ytm) is equal to 7.7%/2 = 3.85%.PMT (coupon payment) = $ 42.01.Coupon rate = (42.01 / 1000) = 4.20%.Therefore, the annual coupon rate is equal to 4.2 * 2 which equates to 8.40%
