Mention any five essential elements required for insurance contract

A corporation issued 5,000 shares of $20 par value common stock for $120,000 cash. A corporation issued 2,500 shares of no-par c

lapo4ka [179]

Answer:

Journal Entries Transaction

1.

Dr. Cash $120,000

Cr. Common stock $100,000

Cr. Paid-in capital excess of par, Common stock $20,000

2.

Dr. Company expenses $22,000

Cr. Common stock, $1 stated value $2,500

Cr. Paid-in-capital excess of stated value common stock $19,500

3.

Dr. Company expenses $22,000

Cr. Common stock, no-par value $22,000

4.

Dr. Cash $53,250

Cr. Preferred stock, $25 par value $31,250

Cr. Paid-in capital excess of par preferred stock $22,000

Explanation:

1. The Excess of common stock and cash received will be recorded in the Paid in capital in excess of par value, common Stock account.

Common Stock, $20 Par Value = 5,000 shares × $20 per share = $100,000

Paid in capital in excess of par value, common Stock = $120,000 – $100,000 = $20,000

2.The Excess of common stock and cash received will be recorded in the Paid in capital in excess of stated value, common Stock account.

Common stock = $1 x 2,500 = $2,500

Paid-in capital in excess of stated value, common stock = $22,000 - $2,500 = $19,500

4. The Excess of common stock and cash received will be recorded in the Paid in capital in excess of par value, common Stock account.

Preferred Stock, $25 Par Value = 1,250 shares × $25 per share = $31,250

Paid in capital in excess of par value, preferred Stock = $53,250 – $31,250 = $22,000

6 0

2 years ago

Should the NLRB require union organizer access to the workplace as a quid pro quo for an employer demanding an election rather t

rewona [7]

Answer: yes

Explanation:this is so because When a union wants to unionize a new group of employees, it must first convince at least 30% of the employees to sign authorization cards. If the union successfully does so, the union then submits the cards to the NLRB for certification. If the NLRB certifies that the union has secured cards from 30% of the employees, it orders that a secret ballot election be held where the employees vote on whether to unionize. Typically, about two months pass between the time the NLRB certifies the cards and the time that the election actually takes place. During these two months, the union and the employer actively campaign for or against unionization. At the election, if a majority of employees vote to unionize, then the NLRB recognizes the union as the sole bargaining representative of the employees. The employer is then required by statute to bargain in good faith with the union to negotiate the “first contract” between the employees and the employer. This employment contract determines the terms and conditions for all employees represented by the union.

3 0

2 years ago

signed a contract to work for Acme Global. The contract described the terms of her employment, including her pay and benefits. A

Tems11 [23]

Answer:

Express.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.

An express contract can be defined as a type of contract in which the terms binding on the two parties are either explicitly stated in writing or orally, or a combination of both.

In this scenario, Angelica signed a contract to work for Acme Global. The contract described the terms of her employment, including her pay and benefits. Thus, Angelica signed an express contract because the exchange of promise is stated explicitly in writing and it's a legally binding agreement on the two parties (employer and the employee).

4 0

2 years ago

DailyFinance.com reported one $40 share of Coca-Cola’s stock bought in 1919, with dividends reinvested, would be worth $9.8 mill

Natasha_Volkova [10]

Answer:

28.42

Explanation:

js add the money up

7 0

1 year ago

The following are a series of unrelated situations. Answer the questions relating to each of the five independent situations as

Solnce55 [7]

Answer:

Determine its bad debt expense for 2020. Bad debt expense for 20

Cr Bad Debt Expense $ 524 - Credit, which means a profit in the income statement.

Allowance for Uncollectible Accounts Balance

$ 4,380 - $524 = $ 3,856

Explanation:

December 31, 2020

Dr Accounts receivable $ 48,200

Cr Allowance for Uncollectible Accounts $ 4,380

Net Credit Sales $ 1,253,200

Buffalo Company estimates its bad debt expense to be 8% of gross accounts receivable.

Determine its bad debt expense for 2020. Bad debt expense for 20

Dr Allowance for Uncollectible Accounts $ 524

Cr Bad Debt Expense $ 524

Allowance for Uncollectible Accounts Balance

$ 4,380 - $524 = $ 3,856

The allowance for uncollectible Accounts must reflect as balance the value estimated as bad debts, which is 8% of gross accounts receivable. $48,200*0,08 = $3,856

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % estimated of accounts receivables as CREDIT, if the company had balances that differ from that value then it must be adjusted to the new estimated value.

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Allowance for Uncollectible Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

8 0

2 years ago

Mention any five essential elements required for insurance contract​

Mention any five essential elements required for insurance contract