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Bess [88]
3 years ago
13

Gonzales Company declared and distributed a 10% stock dividend when it had 800,000 shares of $1 par value common stock outstandi

ng. The market price per share of common stock was $60 per share when the dividend was declared. The journal entry to record the stock dividend would include a credit to:__________.
a. Common Stock $800,000.
b. Stock Dividends $1,200,000.
c. Additional Paid-in Capital -Common $4.720,000.
d. Retained Earnings $800,000.
Business
1 answer:
Alenkinab [10]3 years ago
7 0

Answer: C. Additional Paid-in Capital -Common $4.720,000.

Explanation:

Based on the information given in the question, the journal entry to record the stock dividend would go thus:

Debit: Retained earnings = 80000 × $60 = $4,800,000

Credit: Common stock = 80000 × $1 = $80000

Credit: Additional paid in capital- Common stock = 80,000 × $59 = $4,720,000

(To record share dividend)

Therefore, the journal entry to record the stock dividend would include a credit to Additional Paid-in Capital -Common $4.720,000

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Swift Company purchased a machine on January 1, 2016, for $900,000. At the date of acquisition, the machine had an estimated use
rosijanka [135]

Answer:

the correct answer is $90,000

Explanation:

900,000÷6=150,000

150,000×3=450,000

450,000÷5=90,000

good luck ❤

7 0
3 years ago
Sunk costs? are not considered when evaluating new proposals. differ among the alternatives. impact the future. are relevant.
loris [4]

The correct answer is “are not considered when evaluating new proposals”.

Sunk costs are sums of money that have already been spent and cannot be recovered. For instance, a manufacturing business may have a range of sunk costs, such as the price of machinery, equipment, and facility lease payments.

<h3>Why is it known as a "sunk cost"?</h3>

In economics and finance, a cost that has already been incurred and which cannot be recovered is known as a sunk cost. Sunk expenses are viewed as bygone in economic decision-making and are not taken into account when determining whether to continue an investment project.

<h3>Why does sunk cost matter?</h3>

There is a barrier to entry when an industry has large sunk costs. If a company must invest a significant amount of money, it won't be able to recover.

To know more about Sunk costs, visit: brainly.com/question/20438089

#SPJ4

8 0
2 years ago
The Vernon Corporation was formed on January 2, 2018. The company sold 20,000 shares of $8.00 par value stock for $20.00 per sha
GalinKa [24]

Answer:

Option (A) is correct.

Explanation:

The Journal entry is as follows:

Cash A/c Dr. $400,000

   To common stock A/c       $160,000

   To Paid-in capital in excess of par A/c $240,000

(To record the original sale of the stock)

Workings:

Cash = Number of shares sold × Selling price of each share

        = 20,000 × $20

        = $400,000

Common stock = Number of shares sold × Par value

                         = 20,000 × $8

                         = $160,000

Paid-in capital in excess of par = $400,000 - $160,000

                                                   = $240,000

6 0
4 years ago
Choose one of the common workplace torts discussed in the chapter readings for this unit (except genetic testing). Prepare a spe
Umnica [9.8K]

Answer:

One of the basic working environment torts is distortion. It is one of the basic torts where both boss and worker enjoy employing and determination process. Worker answer this to pick up favor in determination and advancement where as business enjoy this to pull in best ability from the business. To manage this the association should set up a legitimate strategy which can adjust the rights among manager and representative. The business should make a definite personal investigation on the accreditation gave by the representative during choice and before arrangement process. It ought to incorporate past understanding and work, instructive, proficient direct, criminal instances of the representative where as manager ought to give everything in kept in touch with the worker so they can stake guarantee if business neglects to give those things to the workers. It is a sort of win-win circumstance for both manager and representative where level playing field has been made for them

5 0
4 years ago
Perth Corporation owns 90 percent of Dundee Company's stock. At the end of 20X8, Perth and Dundee reported the following partial
AleksandrR [38]

Answer:

The correct option is a. $56,573

Explanation:

For computing the correct amount of inventory for both Perth and the Dundee, we have to exclude the profit portion from the inventory amount.

In mathematically,

Perth corporation inventory = Inventory ÷ (100 + markup profit)

                                              = $31,000 ÷ (100 + 30%)

                                              = $31,000 ÷ 130%

                                              = $23,846

Dundee company inventory = Inventory ÷ (100 + markup profit)

                                               = $36,000 ÷ (100 + 10%)

                                               = $36,000 ÷ 110%

                                               = $32,727

So, the total inventory would be equal to

= Perth corporation inventory + Dundee company inventory

= $23,846 + $32,727

= $56,573

Hence, the $56,573  will be reported for inventory in the consolidated balance sheet for December 31, 20X8

Therefore, the correct option is a. $56,573

8 0
3 years ago
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