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3 years ago

Dr. Peabody contributed $5,000 in cash to the company. Which of the following statements is correct?

Business

1 answer:

Vinvika [58]3 years ago

5 0

Answer:

D. Cash is debited $5,000; capital is credited $5,000.

Explanation:

The action by Mr. Peabody will increase both cash and capital accounts by $5000 each. As per the accounting equation,( Assets = owners equity + liabilities) cash and capital are on the opposites sides. Cash is an asset, while capital is equity.

An increase in an asset is a debit, while an increase in capital is credited. In this case, the cash account will be debited by $5000, while the same amount will credit the capital account.

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QUESTION 22 You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date, when

NikAS [45]

Answer:

$500 loss

Explanation:

Since you purchased a call contract for IBM stock, you had the option to buy IBM stock at a specified price ($125) within a specified time (?). The problem is that the price of your call contract was higher than the market price at that specific date. Obviously you will not exercise your option in order to limit your losses.

long call profit = Max [0, (current stock price - strike price) x number of shares] - premium paid)

where:

current stock price = $123
strike price = $125
number of shares = 100
premium paid = $5 x 100 = $500

long call profit = Max [0, ($123 - $125)(100)] - $500 = -$500

6 0

3 years ago

A recent college graduate has job offers for a sales position in two computer firms. Job A pays $45,000 per year plus 15% commis

otez555 [7]

Answer:

For the salesman to more lucrative, the yearly business should be greater than $142857.1429.

Explanation:

let $x be the yearly business that the salesman must do

35,000 + 22%x > 45,000 + 15%x

7x/100 > 10000

7x > 1,000,000

x > $142857.1429

Therefore, for the salesman to more lucrative, the yearly business should be greater than $142857.1429.

4 0

3 years ago

Market anomaly refers to _______.A. an exogenous shock to the market that is sharp but not persistentB. a price or volume event

Klio2033 [76]

Answer:

the correct answer is C. A trading or pricing structure that interferes with efficient buying and selling of securities.

Explanation:

7 0

4 years ago

You own 12,000 shares of a company. The company announces a two-for-one stock split. You will wind up with two shares for every

12345 [234]

Answer:

The correct answer is: 24,000 shares.

Explanation:

Sometimes the price of a company's outstanding shares grows so much that it could discourage average investors because a high price may make the stock be harder to sell. In this case, the firm can split the number of outstanding shares into two (2) or more. The number of stocks investors will have is multiplied proportionally to the split but the value of each stock will be divided.

Therefore, if the initial amount of shares is 12,000 and a two-to-one split is made, the number of shares the investor will have after the split is: 12,000 x 2 = 24,000 shares.

7 0

4 years ago

Flynn Industries has three activity cost pools and two products. It expects to produce 2,200 units of Product BC113 and 1,430 of

netineya [11]

Answer:

Results are below.

Explanation:

First, we need to calculate the allocation rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine setup= 19,608 / 38= $516 per set up

Machining= 123,650 / 4,945= $25 per machine hour

Packing= 33,530 / 479= $70 per order

Now, we can allocate to each product:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product BC113:

Machine setup= 516*21= $10,836

Machining= 25*1,122= $28,050

Packing= 70*192= $13,440

Total= $52,326

Product AD908:

Machine setup= 516*17= $8,772

Machining= 25*3,824= $95,600

Packing= 70*287= $20,090

Total= $124,462

Finally, the unitary cost:

Product BC113= 52,326 / 2,200= $28,79

Product AD908= 124,462 / 1,430= $87.04

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3 years ago