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tia_tia [17]
3 years ago
8

LBM, Inc. issues 25,000 shares of common stock for $20 per share. The stock has a par value of $1 per share. By what amount woul

d LBM credit capital in excess of par? Group of answer choices $500,000 $475,000 $25,000
Business
1 answer:
Arisa [49]3 years ago
5 0

Answer:

$475,000

Explanation:

Calculation for By what amount would LBM credit capital in excess of par

Dr Cash $500,000

(25,000 shares*$20 per share)

Cr Common Stock $25,000

(25,000 shares*$1 per share)

Cr Capital in excess of par $475,000

($500,000-$25,000)

Therefore based on the above Journal entry and calculation the amount that LBM would credit as capital in excess of par will be $475,000 ($500,000-$25,000).

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On March 31, 2018, Easy Rental Agency Inc.'s trial balance included the following selected unadjusted account balances. The comp
AVprozaik [17]

Answer:

1)

Dr Depreciation expense 1,226

    Cr Accumulated depreciation 1,226

2)

Dr Unearned revenue 6,487

    Cr Rent revenue 6,487

3)

Dr Interest expense 600

    Cr Accrued interest 600

4)

Dr Supplies expense 1,960

    Cr Supplies 1,960

5)

Dr Insurance expense 3,618

    Cr Prepaid insurance 3,618

6)

Dr Income tax expense 2,600

    Cr Income tax payable 2,600

Explanation:

March 31, 2018

Prepaid insurance $14,740  - 3,618

Supplies 2,900  - 1,960

Equipment 22,100

Accumulated depreciation-equipment 5,680  + 1,226

Unearned revenue 9,730  - 6,487

interest payable 600

Income tax payable 2,600

Loan payable, due 2020 20,000

Rent revenue 30,900  + 6,487

Salaries expense 14,500

depreciation expense 1,226

interest expense 600

Supplies expense 1,960

Insurance expense 3,618

Income tax expense 2,600

1. The equipment, which was purchased on January 1, 2017, is estimated to have a useful life of four years. The company uses straight-line depreciation.

depreciation per year = $22,100 / 4 = $5,525

depreciation expense up to March 31, 2018:

$5,525 x 1.25 = $6,906.25 ≈ $6,906

adjustment entry = $6,906 - $5,680 = $1,226

Dr Depreciation expense 1,226

    Cr Accumulated depreciation 1,226

2. One third of the unearned revenue related to rent is still unearned at the end of the quarter.

adjusting entry = 9,730  - (9,730  x 1/3) = $6,486.67 ≈ $6,487

Dr Unearned revenue 6,487

    Cr Rent revenue 6,487

3. The loan payable has an interest rate of 6%. Interest is paid on the first day of each following month and was last paid March 1, 2018.

interest per month = $20,000 x 6% x 1/12 = $600

Dr Interest expense 600

    Cr Accrued interest 600

4. Supplies on hand total $940 at March 31.

adjusting entry = $2,900 - $940 = $1,960

Dr Supplies expense 1,960

    Cr Supplies 1,960

5. The one-year insurance policy was purchased for $14,740 on January 1.

insurance expense per quarter = $14,470 x 3/12 = $3,617.50 ≈ $3,618

Dr Insurance expense 3,618

    Cr Prepaid insurance 3,618

6. Income tax is estimated to be $2,600 for the quarter.

Prepare the quarterly adjusting entries required at March 31.

Dr Income tax expense 2,600

    Cr Income tax payable 2,600

8 0
3 years ago
On January 1 of this year, Houston Company issued a bond with a face value of $ 10,000 and a coupon rate of 5 percent. The bond
denis-greek [22]

A bond amortization schedule for all three years of the bond's life

principal     10,000      

 interest paid    500      

             

             

 principal use PV of $1 at 4% for 3 years      

             

 10000 * 0.889   = 8890    

             

             

 for interest use PV of an ordinary annuity      

             

 500 * 2.77509  = 1388    

 Issue price of bonds      10278    

             

           

2) 31-Dec   Year 1 Year 2      

             

 interest expense 411 408      

 bond liability  10189 10096  

Learn more about bonds here brainly.com/question/25965295

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7 0
1 year ago
The effective rate of a $25,000 non-interest-bearing simple discount 10%, 90-day note is
Vlada [557]
<span>For the answer to the question above, the $25,000 due in 90 days.
 I'll use 365 days per year. 10% simple discount:
25000*0.10(90/365) = 616.44
Cash in hand at the beginning of the 90 days:
25000 - 616.44 = 24,383.56

Solve for r: 616.44 = 24383.56*r*(90/365) 

r = 0.10252837 or the nearest answer is letter <span>C. 10.26%
It is not exact because maybe he rounded  off the </span></span>24383.56 
5 0
2 years ago
Which of these statements is true about a nonrenewable energy resource
gogolik [260]

Answer:

B. It is used up faster than it is made

Explanation:

Nonrenewable resources are largely fossil fuels that take millions of years to form. These fuels have high carbon content. These fuels include petroleum, natural gas and coal and others of the sort. Once they are used up it will take earth millions of years and natural processes over the years to replenish them thus, they are not easy to replace.

Hope that helps.

7 0
3 years ago
Read 2 more answers
What role does competition play in international trade? It results in higher prices. It discourages imports. It drives down pric
stepan [7]

Answer:

It drives down prices for consumers.

Explanation:

5 0
3 years ago
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