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3 years ago

If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be:_______

Business

1 answer:

lidiya [134]3 years ago

5 0

Answer: b. Equity would increase by $64,679

Explanation:

You included no figures from Baldwin's financials but the above is the only feasible answer.

When more Equity is issued as was the case here, Equity will increase not decrease (option A is therefore wrong).

Retained earnings are the portion of Net Income that are not paid out by the company as dividends and so have nothing to do with stock issuance which renders options C and D wrong.

Option B speaks of an increase in Equity and so is most likely correct.

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Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities.

storchak [24]

Answer:

Ans. your monthly payment, for 30 years is $9,257.51 if you buy a property worth $1,000,000 and you make a down payment of $100,000

Explanation:

Hi, first we have to change the fixed rate in terms of an effective monthly rate, which is 1% effective monthly (12% nominal interest/12 =1% effective monthly). After that, take into account that the property is going to be paid in 30 years, but since the payments are going to be made in a montlhly basis, we have to turn years into months (30 years * 12 = 360 months).

After all that is done, all we have to do is to solve the following equiation for "A".

$PresentValue=\frac{A((1+r)^{n} -1)}{r(1+r)^{n} }$

Where:

A= Annuity or monthly payment

r= Rate (effective monthly, in our case)

n= Periods to pay (360 months)

Everything should look like this.

$900,000=\frac{A((1+0.01)^{360} -1}{0.01(1+0.0.1)^{360} }$

$900,000=A(97.2183311)$

$\frac{900,000}{97.2183311} =A$

$A=9,257.51$

Best of luck.

6 0

3 years ago

At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 901,000 Credit sales 30

Anon25 [30]

Answer:

Please find the detailed answer in the explanation section.

Explanation:

A. 4% of credit sales

Bad Debts Expense is 4% of $301,000

0.04 x $301,000

=$12,040

Adjusting entry

Dec. 31

Dr Bad debt expense $12,040

Cr Allowance for Doubtful allowance $12,040.

B. 2% of total sales

Total sales = cash sales + credit sales

$ 901,000 + $ 301,000

=$1,202,000

Bad Debts Expense is 2% of 1,202,000

0.02x $1,202,000

=$24,040

Adjusting entry

Dec. 31

Dr Bad debt expense $24,040

Cr Allowance for Doubtful allowance $24,040.

C. 7% of year-end accounts receivable.

Unadjusted balance is $5,100

Estimated balance = $8,820(7% of $126,000)

Adjusted balance is $13,920($5,100 + $8,820)

Adjusting entry

Dec. 31

Dr Bad debt expense $8,820

Cr Allowance for Doubtful allowance $8,820

5 0

2 years ago

Windsor Locomotive Corporation purchased for $550,000 a 40% interest in Lopez Railways, Inc. This investment enables Windsor Loc

Vanyuwa [196]

Answer:

Journal Entries

Dr. Investment in Lopez Railways Inc. $600,000

Cr. Cash $600,000

Dr. Investment in Lopez Railways Inc $59,600

Cr. Income of Investment in Lopez Railways Inc $59,600

Dr. Cash $10,800

Cr. Investment in Lopez Railways Inc $10,800

Explanation:

As Windsor Locomotive Corporation has purchased 40% interest in Lopez Railway Inc.Lopez Inc. is classified as the associate company of Windsor Corp.

Share in net Income = $149,000 x 40% = $59,600

Share In Dividend = $27,000 x 40% = $10,800

4 0

2 years ago

Groupong Inc. recently paid a $2.78 annual dividend on its common stock. This dividend increases at 3.50 percent per year and th

liq [111]

Answer:

c) 11%

Explanation:

The question is to determine the rate of return on Groupong Inc's

The rate of return represents an investment's net gain or net loss calculated over a period of time and usually expressed in terms of the percentage of the initial cost of investment.

The rate of return in this question is calculated as follows:

Rate of Return = (The Dividend for the next year/ the current price of the share) + The Growth rate

The dividend for the next year = current year dividend x (1+r), where r is 3.5

= 2.78 x (1+0.035)

=2.78 x 1.035

= (2.8773/38.3) + 0.035

=0.1101 or 11%

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3 years ago

During 2011, Clark Company manufactured equipment for its own use at a total cost of $2,400,000. The project required the entire

Zanzabum

Idk idk idk idk idk idk im sorry btw its just for the starting thing

8 0

3 years ago