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Scilla [17]
3 years ago
8

Prepare the issuer's journal entry for each of the following separate transactions.

Business
1 answer:
jeka57 [31]3 years ago
3 0

Answer:

a.

March 1

Debit  : Cash $318,500

Credit : Common Stock $198,000

Credit : Excess of Par $120,500

<em>Being Issue of Par value Shares for $318,500 cash</em>

b.

April 1

Debit  : Cash $84,000

Credit : Common Stock $84,000

<em>Being Issue of no Par value shares for $84,000 cash</em>

c.

April 6

Debit  : Inventory $53,000

Debit : Note Receivable $103,000

Credit : Common Stock $68,000

Credit : Excess of Par $88,000

<em>Being Issue of Par value Shares for Inventory and Note Receivable</em>

Explanation:

Note: We are instructed to prepare journals from the issuer`s point of view and this needs to be followed.

When shares are issued, the Common Stock increases :

a. For par value Common Stocks, any price paid in excess of par value is accounted in Excess of Par Reserve.

b. For no par value shares, there is no Excess of Par Reserve, we simply record the increase in Common Stock at the price paid for.

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Which of the following is FALSE? Group of answer choices Most of the maquiladora industry is located in the states of Mexico tha
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Answer:

The maquiladora industry has not created much employment in Mexico because most of the production is capital intensive

Explanation:

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Jamal Steel, a rapidly growing small steel company with annual revenues of $8 million is looking to buy a large industrial furna
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Answer:

The correct answer is A. maker.

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Stock Z is trading at $50 today. In one year, the value will go either up to $62.50 or down to $40. A call option on Z with exac
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Answer:

0.33

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Cd = 0

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. Costs that the manager has the power to determine or at least strongly influence are called: Question 5 options: A. Uncontroll
GalinKa [24]

Answer:

B. Controllable costs

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