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PilotLPTM [1.2K]
3 years ago
12

Jensen performed legal services to assist Balm Co. in accomplishing its initial organization. Jensen accepted 1,000 shares of $5

par common stock in Balm as payment for his services. The Balm shares were not yet publicly traded, but they had a book value of $4 per share. Jensen provided 48 hours of service, which is normally billed at $125 per hour. By what amount should the common stock account increase?
Business
1 answer:
KiRa [710]3 years ago
8 0

Answer: $5,000

Explanation:

The Common Stock account of a company will record stock only at the Par Value so that the Balance sheet is more accurate.

As such, the common stock account here will increase by;

= 1,000 * $5 par value

= $5,000

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When there is more choice for proceducers and consumers, that is a Command Economy.
yaroslaw [1]
Correct Answer: False
7 0
3 years ago
Barbara Smith is an employee of Allied Manufacturing Company. She has an 8-hr workday and each day is paid $0.60 for each unit p
MariettaO [177]

Answer:

$309

Explanation:

The computation of the gross earning for the week is as follows:

Given that

Payment of $7.15 × 8 = $57.2  or payment of  each unit produced whichever is greater

On monday

= 90 units × $0.60

=  $54

But the greater is $57.2

On tuesday

= 114 units × $0.60

=  $68.4

On Wednesday

= 82 units × $0.60

= $49.20

But the greater is $57.2

On thursday

= 112 units × $0.60

= $67.20

On friday

= 98 units × $0.60

= $58.80

Now the earnings for the last week is

= $57.20 + $68.4 + $57.20 + $67.20 + $58.80

= $308.80

= $309

8 0
2 years ago
michael was on the abc accounting firm's audit team for the rasmussen corporation audit. rasmussen's officers were so impressed
nirvana33 [79]

In order to preserve independence, Michael must "Remove himself from the engagement as he considers the offer." (Option B). It is to be noted that this is an internal control problem.

<h3>What is Independence in this case?</h3>

The absence of situations that jeopardize the internal audit activity's capacity to carry out internal audit tasks objectively is called Independence.

Practically, independence is achieved by ensuring that the internal audit activity has no management control for any of the organization's non-audit functions that are subject to internal audit assessments, and by distancing the internal audit activity's management from the functional oversight of the organization's senior management.

Learn more about internal control:
brainly.com/question/26398073
#SPJ1

Full Question:

Michael was on the ABC Accounting Firm's audit team for the Rasmussen Corporation audit. Rasmussen's officers were so impressed with Michael that they offered him a job as Director of Internal Audit at Rasmussen. What should Michael do in order to preserve independence?

A) Tell his superiors as soon as he has decided whether or not to accept the offer.

B) Remove himself from the engagement as he considers the offer.

C) Pray for divine guidance.

D) If he decides to reject the offer, remove himself permanently from the engagement.

6 0
2 years ago
When Tesla first launched their electric vehicles in the United States, they deviated from the norm in the automobile industry a
Damm [24]

Answer:

The choice of Tesla is known as Forward Integration.

According to the principles of Transaction Cost Economics, this is a good decision.

Explanation:

Companies sometimes take over the operations/businesses that deal with the distribution and supply of their products and or services. This move is known as forward integration.

Traditionally, companies focus on production then bring in middle-men such as Franchise owners, wholesales, dealers, and retailers to distribute their merhandise to the end user. Whilst there are associated benefits with this model, it's been found that the interests of the middle men also generate considerable costs.

In order to competitive advantage, companies are modifying their business models such that end users can deal directly with them thus reducing the final price of their goods and or services making them more accessible and easier to purchase for the consumers.

Transaction Cost Economics refers to the various ways in which an organisation can be set up in order to manage or control the costs associated with its transactions. The goal of transaction cost economics is to reduce overall costs in order to optimize profits, stay competitive and maintain growth by managing and modifying organisational structures and business models.

The most optimized organisational structure/business model is that which is able to attain the highest efficiency possible by operating at the lowest cost possible.

Good or Bad Decision

The market for motor vehicles is an oligopoly.

Therefore, price is an important factor to consider. As a more recent entrant into that space, this is very crucial for Tesla.

Tesla is not only entering into a market dominated by giants, but is also tryin to modify the way people know to drive cars (at least in most parts of the world). Therefore, it is a great move that it is going with a Price Penetration Strategy. Thus by cutting off the Franchise-Oriented dealerships and selling directly, Tesla is able to retain control over the price of it's vehicles.

The whole essence of reducing it's costs is so that it is able to make its products available to the consumers as an alternative to fossile fuel powered vehicles at the lowest cost possible. Despite it's best efforts, there are still petrol powered cars that are at least $10,000 cheaper that what Tesla is offering.

Besides price, one major factor that influences the choice to go with hybrid or 100% of electric cars is that they are clean and very environmental friendly.

Cheers!

5 0
3 years ago
Bad managerial judgments or unforeseen negative events that happen to a firm are defined as "company-specific," or "unsystematic
inysia [295]

Answer:

The correct answer is True.

Explanation:

Non-systematic risk, also known as "diversifiable risk", encompasses the set of factors of a company or industry, and that affect only the profitability of its stock or bond. For this reason they cannot be diversified.

In other words, the non-systematic risk arises from the uncertainty surrounding a company due to the development of its business, either due to the company's own circumstances or those of the sector to which it belongs. Examples of these events can be bad business results, the signing of a large contract, worse than expected sales data, a new product of the competition, discovery of fraud within the company, a bad management of its managers, etc.

8 0
3 years ago
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