When all the terms of a contract are specifically set forth, the resulting

Colson Inc. declared a $320,000 cash dividend. It currently has 12,000 shares of 7%, $100 par value cumulative preferred stock o

Alex787 [66]

Answer:

The divided for common stockholders is $152000

Explanation:

The preferred stock is cumulative whch means any arrears in preference dividend will be paid whenever the dividend is declared.

The amount of yearly preference dividends is = 12000 * 100 * 0.07 = 84000

Thus, when 320000 cash dividend is declared, 2 years ( current year and arrear year) preference dividend will be paid first and the remaining will be distributed among common stock holders.

The dividedn for common stockholders is 320000 - (84000 * 2) = $152000

4 0

3 years ago

Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products, via e-records. Under the UETA, an e-record

Gelneren [198K]

Answer: d. leaves the sender's control.

Explanation:

Under the Uniform Electronic Transaction Act(UETA), there are three conditions that must be met for an e-record to be considered sent and the relevant one here is that the e-record leaves the control of the sender.

It does this by entering into an information processing system that the sender does not control of.

The other requirements demand that the e-record be properly addressed to a system specified by the recipient and this system must be able to process said e-record.

4 0

3 years ago

The All-Mine Corporation is deciding whether to invest in a new one-year project. The project would have to be financed by equit

Lerok [7]

A. NPV of the project

NPV = -2000 + 2500/(1.15) = $173.91

B. Value of the firm and its debt and equity components before and after the project addition.

Determine expected cash flows before the project.

($3,000 + $3,000 + $1,000)/3)/1.15 = $2,333.33/1.15 = $2,028.99

($1,500 + $0 + $0)/3)/1.15 = $500/1.15=$434.78

Determine value with project.

($3,000 + $3,000 + $3,000)/3)/1.15 =$3,000/1.15 = $2,608.70

($4,000 + $2,500 + $500)/3)/1.15 = $2,333.33/1.15=$2,028.99

C. The company should not take the project because the NPV does not go to equity but to bond holders.

5 0

4 years ago

The situations presented here are independent of each other. For each situation, prepare the appropriate journal entry for the r

77julia77 [94]

Answer:

1. April 30

Dr Bonds payable $158,000

Dr Loss on redemption of bonds payable $18,486

Cr Discount on bonds payable $15,326

Cr Cash $161,160

2. June 30

Dr Bonds payable $179,000

Dr Premium on bonds payable $14,320

Cr Gain on redemption of bonds payable $23,270

Cr Cash $170,050

Explanation:

1. Preparation of the appropriate journal entry for the redemption of the bonds.

April 30

Dr Bonds payable $158,000

Dr Loss on redemption of bonds payable $18,486

($161,160+$15,326-$158,000)

Cr Discount on bonds payable $15,326

($158,000-$142,674)

Cr Cash $161,160

($158,000*1.02)

(To record redemption of bonds)

2. Preparation of the appropriate journal entry for the redemption of the bonds.

June 30

Dr Bonds payable $179,000

Dr Premium on bonds payable $14,320

($193,320-$179,000)

Cr Gain on redemption of bonds payable $23,270

($179,000+$14,320-$170,050) .

Cr Cash $170,050

($179,000*.95)

(To record redemption of bonds)

6 0

3 years ago

Champagne of the South, Inc., a manufacturer of bottled sweet tea, had the following beginning and ending inventories for the

nekit [7.7K]

Answer:

total manufacturing cost added for the period 105,169

Cost of goods manufactured 106,064

Cost of goods sold 110,564

Explanation:

First, we need to know the amount of direct materials used in production.

beginning raw materials 10,000

purchase 27,000

ending (1,702)

indirect materials (2,129)

direct materials 33,169

now, we calculate the cost added during the period

direct materials 33,169

direct labors 30,000

overhead 42,000

total cost added 105,169

next step, we calculate the cost of goods manufactured from the WIP

WIP 17,895

added 105,169

WIP ending (17,000)

COGM 106,064

And last, the cost of goods sold

beginning finished goods 21,000

COGM 106,064

ending finished goods (16,500)

COGS 110,564

6 0

4 years ago