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3 years ago

Selected transactions from the journal of Metlock Inc. during its first month of operations are presented here:

Business

1 answer:

Akimi4 [234]3 years ago

6 0

Answer:

Metlock, Inc.

T-accounts:

Common Stock

Date Account Titles Debit Credit

Aug. 1 Common Stock 9,000

Cash

Date Account Titles Debit Credit

Aug. 1 Common Stock 9,000

Aug. 10 Service Revenue 1,400

Aug. 12 Equipment 1,540

Aug. 31 Accounts receivable 750

Service Revenue

Date Account Titles Debit Credit

Aug. 10 Cash 1,400

Aug. 25 Accounts receivable 2,570

Equipment

Date Account Titles Debit Credit

Aug. 12 Cash 1,540

Notes Payable 4,060

Accounts Receivable

Date Account Titles Debit Credit

Aug. 25 Service Revenue 2,570

Aug. 31 Cash 750

Explanation:

Common stock of $9,000 was posted on the debit side as it appeared first. This follows the normal order of recording transactions in the journal. The accounts to be debited are recorded first before the accounts to be credited. However, this entry appears abnormal. Cash of $9,000 should have appeared first in the journal before the Common Stock. Whichever is the correct interpretation, all the journal entries have been posted to the T-accounts accordingly.

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A company’s perpetual preferred stock has a par value of $65 per share and it pays a dividend rate of 6.25% per year. The prefer

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Answer:

Cost of preferred stock=7.41 %

Explanation:

A preferred stock entitles its investor to a fixed amount of dividend for the foreseeable future. The dividend payable by a preferred stock is similar to a perpetuity. Hence, the price of the stock would be the same as the present value of the dividend payable for the foreseeable future.

A preferred stock entitles its owner to a fixed amount of dividend. It is calculated as follows:

Cost of preferred stock = D/P(1-f) × 100

D- Preference dividend

P- stock price

F- flotation cost

Preference dividend = Coupon rate × Nominal value

DATA

Nominal value = $65

Stock price = $58.63

Dividend rate=6.25%

Flotation cost = 6.5%

Preference dividend = 6.25%× 65 = 4.063

Cost of preferred stock =(4.063 /58.63×(1-0.065) × 100 = 7.41 %

Cost of preferred stock=7.41 %

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3 years ago

When President Obama proposed increasing the minimum wage, he argued that a minimum-wage worker today should earn the same amoun

padilas [110]

Answer:

The Minimum Wage Used To Be Enough To Keep Workers Out Of Poverty in 1979.

Explanation:

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3 years ago

Read 2 more answers

A. calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 15-year annuity i

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The first step is to multiply the present value by the interest rate. Since the present value is $1.6 million and the interest rate is 10%, this yields. $160,000. This product is then divided by 1 - (1 + the rate)^-term. So it is divided by 1 - (1.1)^-15. That is, the annual payment = $160,000/[1 - 1.1^-15] = $160,000/.760607951= $210,358.04

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3 years ago

Derrick Company issues 4,000 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2017. The stock has a fair value

algol [13]

Answer:

Explanation:

The journal entry is shown below:

On January 1, 2017:

Unearned compensation A/c Dr $120,000

To Common stock (4,000 × $3) $20,000

To Paid-in capital in excess of par value $100,000

(Being restricted stock is issued and the remaining balance is credited to the paid-in capital)

On December 31, 2018:

Compensation expenses A/c Dr $30,000

To Unearned compensation $30,000

(Being compensation expenses are recorded)

The compensation expenses is computed below:

= (Fair value of stock) ÷ (number of years)

= ($120,000) ÷ (4 years)

= $30,000

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3 years ago

Después de la pandemia y con la reactivaciòn de la economía peruana, ¿Qué oportunidades tienen los productores agrícolas de obte

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Answer:

The answer to that question has a lot of unknown factors included. We can assume two different scenarios:

Scenario 1: the world's economy recovers completely in a relatively short amount of time. This would allow agricultural producers in Peru and the rest of the world to obtain forward contracts that are favorable to them.

Scenario 2: the world's economy doesn't recover fast enough. Since uncertainty would increase, so would the risk of future (forward) contract increase. When this happens, the weakest link suffers the most. in this case, the weakest link are the agricultural producers. The forward contracts would be carried out but the prices will be very low.

In Spanish:

Esta pregunta incluye muchos por si acasos que por el momento son totalmente inciertos. Podemos asumir 2 escenarios mundiales diferentes:

Escenario 1: la economía mundial se recupera rápidamente, lo que beneficiaría a los productores agrícolas peruanos (y de todo el mundo) ya que podrían obtener contratos de futuro muy favorables.

Escenario 2: la economía mundial nos e recupera lo suficientemente rápido, lo que incrementa el riesgo y la incertidumbre de los contratos a futuro. Cuando el riesgo aumenta, quien lo paga es el eslabón mas débil y en este caso son los productores agrícolas. Van a existir contratos a futuro, pero los precios serían muy bajos.

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3 years ago