Preferred stock is a type of investment security which represent ownership in a corporation and is also a debt instrument of the company.
Explanation:
<u>Preferred stock is a type of investment security which represent ownership in a corporation and is also a debt instrument of the company</u>.It is basically of 5 types
- Cumulative
- Participating
- Convertible
- Callable
- Adjustable-rate
Preferred stock comes in many varieties.
<u>Cumulative preferred stock</u> includes a requirement that past dividends not paid must be paid in future years before any common stock dividends may be paid.
<u> Participatory preferred stock </u>includes the ability to collect dividends with the common stock owners after all preferred dividends have been paid.
<u> </u><u>Convertible preferred stock </u>may be turned in for common stock under certain conditions.
<u> Callable </u>preferred stock, also known as callable preferred stock, comes with the risk that the issuing company may<u> buy back </u> the shares under certain conditions.
Being smart and being decisive.
Answer: Under wax
Before the contract laws were reformed, a contract that was sealed with wax was accorded special status.
This is because the existence of a wax seal on a contract was considered as the first evidence that a contract was made.
The wax seals were affixed impress the importance of contract upon the parties to it.
It was also meant to demonstrate that both the parties to the contract intended to enter into a legally binding transaction.
Answer:
Residual Income = Net Income minus (target income)
Target income = rate of returns x operational Assets
A.
Cameras and camcorders investment centre
Residual income = 6,900,000 - (12% x 29,000,000)
= $3,420,000
B.
Phones and communications investment centre
Residual income = 1,548,000 - (12% x 12,900,000)
= $0
C.
Computers and accessories investment centre
Residual income = 800,000 - (12% x 16,600,000)
= -$1,192,000
Answer and Explanation:
The Journal entry is shown below:-
Cash Dr, $22,000,000
To Bonds payable $22,000,000
(Being issuance of bonds is recorded)
2. Interest expenses Dr, $440,000
($22,000,000 × 4% × 6 ÷ 12)
To cash $440,000
(Being payment of interest is recorded)
3. Bonds payable Dr, $22,000,000
To Cash $21,560,000
To Gain on Retirement on bonds, plug $440,000
(Being the retirement of bonds is recorded)
