Answer and Explanation:
The journal entries are as follows
a. Cash $210,500
To Common Stock (12,000 × $14) $168,000
To Paid in capital in excess of par value-Common Stock $42,500
(being the issue of the common Stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and paid in capital as it also increased the stockholder equity
b. Cash $210,500
To Common Stock $210,500
(being the issue of the common Stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock as it also increased the stockholder equity
c. Cash $210,500
To Common Stock (12,000 × $7) $84,000
To Paid in capital in excess of stated value-Common Stock $126,500
(being the issue of the common Stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and paid in capital as it also increased the stockholder equity
Income statement and the statement cash flows
Answer:
In short-run: Bob should stay in the business because his variable cost per product ( lawn-mowing) is still below his revenue per product. Although Bob is making loss of $10 per day ( $27 x 10 lawns - 280), he can still improve his profit be mow more lawns per day because his variable cost per unit is only $25((280-30) / 10) while his revenue per unit is $27 making his marginal profit is $2 per lawn mowed.
In the long run, Bob will exit the industry if it is getting cheaper to get lawn-mowing services ( as there is less demand or more supply) or the cost of delivering the services is higher ( increase in machinery investment, increase in the cost of oil/gas used to function the mower) making the marginal profit per unit sold is negative.
Explanation:
Explanation is given in the answer.
They belong to the tenant because they are trade fixtures.
Explanation:
Unless perhaps the Landlord requests to buy them from the tenant after the term of service.
Moreover because they are trade fixtures it is unlikely to be used by the next tenant after the current tenant's term ends which makes it impossible to be considered as improvement.
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