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lyudmila [28]
3 years ago
9

On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 40 million, $1 par, common shares, to b

e distributed on July 1. The market price of Siewert common stock was $15 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is not to be effected in the form of a stock dividend. What is the par per share after the split
Business
1 answer:
Lyrx [107]3 years ago
3 0

Answer:

Siewert Inc.

a) Journal Entry:

A memo entry to show that there is a 2-for-1 split only with new par value of $0.50 for 80 million shares.

b) The par value after the split = $0.50

Explanation:

a) Data and Calculations:

Common Stock = 40 million shares

Par value = $1

Declared stock split = 2-for-1

Market price of stock = $15 on June 13

New Common Stock = 80 million shares (40 million * 2)

New Par Value of Stock = $0.50 ($1/2)

b) Siewert Inc. does not record any journal entry for the stock split.  Instead, it prepares a memo entry in its journal that indicates the nature of the stock split (2-for-1) and indicates the new par value to be $0.50. The company's balance sheet will reflect the new par value and the new number of shares authorized, issued, and outstanding after the stock split, which has been multiplied by 2 as 80 million shares.

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American apparel makers complain to Congress about competition from China. Congress decides to impose either a tariff or a quota
Viefleur [7K]

Answer:

B) quota

Explanation:

A quota is a trade constraint imposed by government, which confines a nation's import or export within a certain period, or the amount or monetary value of the products. Nations use quotas to control trading volumes between them and the other nations in global trade. A tariff would put taxation on the Chinese's exports and it doesn't favour them.

4 0
3 years ago
Ruston Company had Net Income for 2020 of $6,200,000. The firm invested $4,000,000 in manufacturing equipment during 2020. The e
Aloiza [94]

Answer:

$3,000,000

Explanation:

Calculation to determine the Net Cash Flow in 2020

STATEMENT OF CASH FLOW

For the Year 2020

Cash flow from operating Activities:

Net Income $6,200,000

Add Depreciation Expense $ 800,000

Net Cash provided by operating activities $7,000,000

($6,200,000+$800,000)

Cash flow from Investing activities:

Investment in Equipment ($4,000,000)

Net Cash used in Investing activities ($4,000,000)

Net Cash flow in 2020 $3,000,000

Depreciation under Straight Line method = (Cost - Salvage Value)/Useful Life

Depreciation under Straight Line method= (4000000-0)/5

Depreciation under Straight Line method= 800,000

Therefore the Net Cash Flow in 2020 is $3,000,000

4 0
3 years ago
A library shelving system has a fi rst cost of $20,000 and a useful life of 10 years. The annual maintenance is expected to be $
Debora [2.8K]

Answer:

The benefit cost ratio is 1.564

Explanation:

The benefit-cost ratio is the ratio of the present value of benefits to the present value of costs. It is thus calculated as follows.

Benefit-cost ratio = Present value of benefits / Present value of costs

Present value of costs = $20,000 + $2,500 (P/A, 10%, 10 years)

                                     = $20,000 + $15,361

                                     = $35,361

Present value of benefits = $9,000 (P/A, 10%, 10 years)

                                          = $9,000 x 6.145

                                          = $55,305

Benefit-cost ratio = $55,305 / $35,361

                             = 1.564

3 0
3 years ago
Rimi currently earns $3300 per month. She has the following monthly debt payment expenses: $80 for credit cards, $130 for studen
vaieri [72.5K]

Answer:

No, her ratio is greater than 37%

Explanation:

Given:

Monthly income = $3,300

Credit card expenses = $80

Student loan expenses = $130

Car payment = $215

All insurances = $1,221

Computation:

Total debt to income ratio = Total debt / Total income

Total debt to income ratio =  (80 + 130 + 215 + 1221) / 3300

Total debt to income ratio = 49.87%  

Housing payments to income ratio = All insurances / Monthly income

Housing payments to income ratio = (1221) / 3300

Housing payments to income ratio = 37%  

No, her ratio is greater than 37%

3 0
3 years ago
Which of the following assets on a bank's balance sheet has the greatest liquidity risk?
Vika [28.1K]

Answer:

 D. 3.

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A bank can have different types of assets, including physical assets, such as equipment and land; loans, including interest from consumer and business loans; reserves, or holdings of deposits of the central bank and vault cash; and investments, or securities.

3 0
3 years ago
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