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Marizza181 [45]
2 years ago
14

Exchanged all of the securities for shares of preferred stock, which were not mandatorily redeemable. Market values at the date

of the exchange were for the securities and per share for the preferred stock. The shares were retired immediately. What journal entries should record in connection with this transaction?
Business
1 answer:
ValentinkaMS [17]2 years ago
8 0

Answer:

The full question is as follows <em>"The following accounts were among those reported on Good Corp.'s balance sheet at December 31, year 1: Available-for-sale securities (market value $140,000) $80,000 Preferred stock, $20 par value, 20,000 shares issued and outstanding 400,000 Additional paid-in capital on preferred stock 30,000 Retained earnings 900,000 On January 20, year 2, Good exchanged all of the available-for-sale securities for 5,000 shares of Good's preferred stock. Market values at the date of the exchange were $150,000 for the available-for-sale securities and $30 per share for the preferred stock. The 5,000 shares of preferred stock were retired immediately after the exchange. Prepare the general journal entry, without explanation, to record this event."</em>

Date    General Journal Entry                                  Debit             Credit

            Preferred stock A/c                                   $100,000

             (5000*$20)          

            Add. paid-in capital on preferred stock   $7,500

             (30000 * 1/ 4)          

            Retained earnings                                     $42,500

                  Trading securities A/c                                               $140,000

                  Gain on exchange of securities                                $10,000

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Answer: A. Par

Explanation:

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These underwriters will then handle everything that have to do with the sale and sell it to the public. Like a Corporate listing, they get a commission from this.

Because of this direct sale by the Underwriter to the public, the Public is most likely to get the offering at Par.

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3 years ago
23. Maria, a new employee, noticed that her supervisor, Jasmine, approved an expense report submitted by a co-worker that result
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Answer:

She failed to cover up the co-worker's improper claim of a personal expense on a company expense report.

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Analyzing the above case, it is correct to say that the supervisor Jasmine failed to cover up the undue complaint of the co-worker, as the accident occurred when he was on a personal mission and unrelated to the company's business, which makes the company not has legal obligations to pay for repairs to his car and these are broken down in a company expense report like the one approved by Jasmine.

Therefore, the supervisor acted unethically and did not follow the company's legal regulations.

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2 years ago
A low-cost leader can translate its low-cost advantage over its rivals into superior profit performance by
sashaice [31]

Answer:

either using its low-cost edge to underprice competitors and attract price sensitive buyers in large enough numbers to increase total profits or refraining from price-cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.

Explanation:

Competitive advantage is the edge that a firm has over others in the same industry that results in higher profit margins for them.

One of the importance competitive advantages is price advantage.

This results from the firm being a low cost leader. Their cost of production is low enough for them to attract customers that are price sensitive leading to increased profits.

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5 0
3 years ago
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The​ ________ approach recognizes that both financial and operational performance measures should be considered when evaluatin
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Answer:

The correct answer is balanced scorecard.

Explanation:

The concept of balanced scorecard came from the idea of looking at the strategic measures in addition to financial performance of an organization in order to have an holistic view of the organization's performance. It is also a strategic tool used in setting key performance indicators (KPIs) for organizations.

The balanced scorecard is used to:

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3 years ago
Quantitative Problem 1: Assume today is December 31, 2017. Barrington Industries expects that its 2018 after-tax operating incom
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Answer:

$29.630

Explanation:

For computation of stock price first we need to follow some steps which is shown below:-

Free cash flow = EBIT (1 - T) + Depreciation - Capital expenditure - Working capital

= $450 million + $65 million - $110 million - $30 million

=  $375 million

Value of firm = Free cash flow ÷ (WACC - Growth)

= $375 million ÷ (9% - 4.5%)

= $375 million ÷ 0.045

= $8,333.33 million

Value of equity = Value of firm - Value of debt

= $8,333.33 million - $3,000 million

= $5,333.33 million

Stock price = Value of equity ÷ Outstanding shares

= $5,333.33 million ÷ 180 million

= $29.630

3 0
3 years ago
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