1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
faust18 [17]
3 years ago
15

Dusty Corporation began business on January 1, 2020. The corporate charter authorizes issuance of 100,000 shares of .01 par valu

e common stock and 10,000 shares of $1 par value, 10% cumulative preferred stock. On July 1, 2020, Dusty issued 30,000 shares of common stock in exchange for three years of rent on a retail location. The cash rental price is $4,200 per month and the rental period begins July 1. How should Dusty adjust its financial statement for the issuance of the shares on July 1?
a. Increase cash by $151,200, and increase prepaid rent by $151,200.
b. Increase prepaid rent by $151,200, and increase common stock by $151,200.
c. Increase prepaid rent by $151,200, increase common stock by $300 and increase additional paid-in capital by $150,900.
d. Increase prepaid rent by $151,200, increase common stock by $150,900, and increase additional paid-in capital by $300.
Business
1 answer:
poizon [28]3 years ago
3 0

Answer:

The answer is "Option c".

Explanation:

                                                                                                 Dr.                    Cr.

Prepayment of rent                                                            151,200

Popular stock                                                                                                  300

Extra capital expenditures                                                                      150,900

You might be interested in
On June​ 1, Addison Company purchased $ 10,000 of inventory on account from Garrison Company. Garrison offers a 4​% discount if
IRINA_888 [86]

Answer:

c. a debit to Inventory for $10,000

Explanation:

Whenever goods are purchased on a discount to be received on payment basis, the inventory is first recorded at cost.

Also as per the general rule, discount is a kind of income, and incomes are recorded only when earned, therefore, the cost of inventory shall be reduced by 4% only when the payment is made, therefore the inventory on the date of purchase shall be recorded at $10,000 only and not for $9,600.

Thus, correct option is c

4 0
3 years ago
How can technology affect a monopoly?
Charra [1.4K]
Price, Supply and Demand. Amonopoly's potential to raise prices indefinitely is its most critical detriment to consumers.
3 0
3 years ago
Certain types of contracts must be in writing pursuant to the statute of​ _____.
marta [7]

Certain types of contracts must be in writing pursuant to the statute of​ "frauds".


A state statute that necessitates certain kinds of agreements to be written, expected to guarantee that terms of imperative contracts are not overlooked, misconstrued, or fabricated, reason for this is to smother misrepresentation, fraudulent cases, some of the time envisioned in light of ensuing occasions or basically invoked.

5 0
3 years ago
Is the WTO's idea of "fair competition" really a code phrase for free trade?
Semenov [28]

Answer:

Yes, the WTO stands for trade liberalization, which requires transparency, economic reform, and no protectionism, regardless of the member nation's economic situation.

3 0
3 years ago
Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger con
Allushta [10]

Answer:

predictive

Explanation:

Based on the information provided within the question it can be said that in the second scenario BSO employed predictive marketing research. This refers to marketing research that focuses on "What if" questions or scenarios in order to design a new plan. Which is what the second scenario is doing by asking "what if" they made an integrated advertising campaign targeted to younger markets.

If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Other questions:
  • Monetary policy has a​ ________ effect on aggregate demand in​ a(n) ________​ economy, and fiscal policy has a​ ________ effect
    11·1 answer
  • Which of the following is an example of traditional management?
    5·1 answer
  • Condensed financial data are presented below for the Phoenix Corporation:
    15·1 answer
  • When utilizing mbo, the manager and employee jointly set objectives for the employee, the manager develops action plans, the man
    9·1 answer
  • Trả lời câu hỏi “vì sao “ dùng phỏng vấn hay anket
    11·1 answer
  • LGIPs offered by municipal broker-dealers are: A investment vehicles available to the general public that permit tax-deferred sa
    9·1 answer
  • An increase in consumer expenditures during the holiday season, a decrease in purchases of U.S. goods by foreigners, a tax incre
    15·1 answer
  • Imagine that a project manager creates a matrix with two variables: risk impact and probability. They use the matrix to measure
    5·1 answer
  • Which eoc configuration aligns with the on-scene incident?.
    10·1 answer
  • g When choosing a forecasting technique, a critical trade-off that must be considered is that between: time series and associati
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!