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anzhelika [568]
3 years ago
11

On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34,

and on February 27, it issued for cash 15,000 shares of preferred stock, $9 par at $12.
Required:
Journalize the entries for January 22 and February 27.
Business
1 answer:
adoni [48]3 years ago
7 0

Answer:

Jan. 22

Dr Cash $7,140,000

Cr Common Stock $6,300,000

Cr Paid in capital in excess of par $840,000

Feb. 27

Dr Cash $180,000

Cr Preferred Stock $135,000

Cr Paid-In Capital in Excess of Par-Preferred $45,000

Explanation:

Preparation of the entries for January 22 and February 27.

Jan. 22

Dr Cash $7,140,000

(210,000*$34)

Cr Common Stock $6,300,000

(210,000*$30)

Cr Paid in capital in excess of par $840,000

($7,140,000-$6,300,000)

Feb. 27

Dr Cash $180,000

(15,000*$12)

Cr Preferred Stock $135,000

(15,000*$9)

Cr Paid-In Capital in Excess of Par-Preferred $45,000

($180,000-$135,000)

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in a split offering, a) shares are issued from the corporation and sold by existing shareholders. b) all shares are issued to th
melisa1 [442]

In a split offering, we see that a) shares are issued from the corporation and sold by existing shareholders.

<h3>What is a split offering?</h3>

A split offering is a type of stock issuance that involves the issuing of new stock and existing stock that it is in the market already. This is why it is called a split offering - one side of the offering comes from the corporation, and the other comes from the existing shareholders.

With a split offering, the seller will be existing shareholders and not the company. This means that the corporation that issues the shares, will then cooperate with existing shareholders who will then be the ones to sell the shares.

Find out more on stock offerings at brainly.com/question/13049425.

#SPJ1

4 0
1 year ago
Please help<br><br>Do businesses only aim at maximizing profits<br><br>​
sesenic [268]
Many companies make other goals a priority over profit maximization. Additionally, some aspects of running a business that meets social and environmental obligations take away from the sole focus of profit maximization.
3 0
3 years ago
Before considering a net operating loss carryforward of $74 million, Fama Corporation reported $210 million of pretax accounting
balu736 [363]

Answer:

correct option is $37 million

Explanation:

given data

net operating loss = $74 million

pretax accounting and taxable income = $210 million

income tax rate = 38%

reducing the rate = 27%

to find out

Fama's income tax payable for the current

solution

we know here net taxable income that is express as

net taxable income = pretax accounting and taxable income - net operating loss    ...................1

put here value we get

net taxable income = 210000 - 74000

net taxable income = $136000

and tax is here = 27 % of $136000

tax = 0.27 ×  $136000

tax = $36720 = 37000

So correct option is $37 million

7 0
3 years ago
Question 9
STALIN [3.7K]

Answer:

Economic recession

Explanation:

A recession occurs when an economy faces a negative real GDP for two successive quarters or more. In a business cycle, the recession would be a period that occurs between the peak and the trough.

A recession can be caused by many factors:

1. High interest rates

2. High unemployment

3. Low consumer and business confidence

It is possible to say that all factors are interconnected. For example, when interest rates are higher, it means that people will spend less on borrowed money, as now borrowing money is more costly. This in turn means that demand for products are lower, leading to lower business confidence. When sales are low, businesses may attempt to cut back on costs to ensure profits. This can take the form of laying off workers. Hence, unemployment in the economy will increase. Consumer confidence will also plummet.

Some consequences may include:

1. Fall in inflation: As aggregate demand in the economy falls, price levels will fall. Thus, reducing inflation.

2. Government deficit: the government may have to start spending more on expenditures such as unemployment benefits. On the other hand, income generated from corporate/income taxes will fall. Fall in income and rise in expenditure causes a deficit.

3. Environmental pollution is less: Due to less movement in the economy, polluting factors such as factory smoke, vehicle congestion and waste send to landfill will be much lesser. This would prove to be beneficial for the environment.

7 0
3 years ago
If the price of a banana is twice the price of an apple, then the sale of a banana contributes twice as much to GDP as the sale
marysya [2.9K]

Yes this statement is true.

Explanation:

The sale of banana will add the twice contribution in the GDP as because the price is double and the sell of every single unit in the market in comparison of apple is able to add more currency in the economy than a sell of every single unit of apple.

The higher price may affect the sale as people will move to the other alternative but how much sell of banana will take place will able to add more money in the market as compared to apple.

3 0
3 years ago
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