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e-lub [12.9K]
3 years ago
7

Tom Yuppy, a wealthy investor, paid $20,000 for 1,000 shares of $10 par common stock issued to him by Leuig Corp. A month later,

Leuig Corp. issued an additional 2,000 shares of stock to Yuppy for $25 per share.
Required:
Show the effect of the two stock issues on Leuig's books in a horizontal statements model.
Business
1 answer:
Sliva [168]3 years ago
3 0

Answer:

See the attached excel file for the horizontal statements model.

Explanation:

In the attached excel file, we have:

FA = Financing activity

For event 1:

Cash = $20,000

Common stock = Number of shares * Share price at par = 1,000 * $10 = $10,000

PIC in Excess = Paid in capital in excess = Cash - Common stock = $20,000 - $10,000 = $10,000

For event 2:

Cash = Number of shares issued * Price per share = 2,000 * $2.50 = $50,000

Common stock = Number of shares * Share price at par = 2,000 * $10 = $20,000

PIC in Excess = Cash - Common stock = $50,000 - $20,000 = $30,000

Download xlsx
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No, Gloria can not legally continue to work for Jan, because Jan has withdrawn her consent for Gloria to act on her behalf.

<h3>What is meant by consent?</h3>

Consent refers to the parties' mutual comprehension of the terms of the agreement. The contract requires the voluntary assent of both parties. If there are certain mistakes, or if one party attempts to deceive or pressure the other, consent will not be considered voluntary or genuine.

The importance of consent in business-

  • Regardless of how you phrase it, consent helps us be more successful marketers.
  • It makes us "ethical" marketers who recognize that acting morally will increase our chances of success in addition to ensuring that we abide by the law.

The three sorts of consent that an organization may get are as follows:

  1. Explicit Consent: An individual must be given a clear choice regarding whether to agree or object to the collection, use, or disclosure of their personal information in order to give their explicit consent.
  2. Implicit Consent: Implied consent is consent that isn't explicitly given by a person but is instead inferred from their behavior and the specific facts and circumstances surrounding the scenario (or, in certain cases, from their silence or inactivity).
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To know more about laws and regulations important for employers, here

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4 0
2 years ago
If the owner of a concert hall wishes to use third-degree price discrimination to price its tickets at $20, $15, and $10, it sho
Anika [276]

Answer: more elastic in their demand for tickets

Explanation:

Third-degree price discrimination is used by company when different price is being charged to a particular group of consumers.

Based on the scenario in the question, the owner of the concert hall should price tickets lower for customers who are more elastic in their demand for tickets.

Elastic demand simply means that a little change in the price of the concert hall will lead to a higher change in the quantity demanded. In this case, when the price increases, such people will buy little tickets. Therefore, the prices should be set lower for these set of people as there will be a huge increase in demand when the price is lower.

3 0
2 years ago
MARS Chocolate Company is making an estimate of the amount of candy it expects to sell during the Christmas season based on a sp
andre [41]

Answer:

The correct answer is (E)

Explanation:

MARS chocolate company will apply all the methods except financial ratios. Financial ratios cannot be used to forecast future sales in this specific situation. Financial ratios are used to analyse, and examine the current financial strength of an organisation, and it helps to compare the financial situation of a company. Financial ratios are used specifically for comparison between organisation’s current and preceding financials.  

5 0
3 years ago
When properly performed, bottom-up budgeting has the disadvantage of: A reduction of top management's control of the budget proc
uysha [10]

Answer:

A reduction of top management's control of the budget process to one of oversight.

Explanation:

Budgeting can be defined as a financial plan which helps different organizations in the control of their various revenues. Budgeting can also be described as a forecast of how much a company expect to sell and also how much they expect to spend on various costs.

Advantages of budgeting include:

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Disadvantages of budgeting include:

- a budget may be inaccurate because it is prepared on the basis of assumptions.

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6 0
3 years ago
Imani, the CEO of Dynamic Health, wants managers and employees to instruct each other about the organization’s chosen values and
Maru [420]

Answer:

George tells a story about a time when the company was first starting out and how the employees banded together.

Explanation:

In the given case the CEO wants to implement sharing of beliefs and values that run in the organisations. Organisational believes and values can be defined as the set of rules and guidelines which are not determined by the administration but are implied due to some past experiences and progress.

   These rules run in the work space of the organisation and every employee follows. It is different in every entity therefore it is tough for new employees to understand them. Therefore, story regarding activities from initiation of the company is the best option among all.

6 0
3 years ago
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