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Phantasy [73]
3 years ago
13

During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to sharehol

ders’ equity. The articles of incorporation authorized the issue of 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share.
Required:
Prepare the appropriate journal entries to record each transaction.
Feb. 12 Sold 2 million common shares, for $9 per share.
Feb 13 Issued 40,000 common shares to attorneys in exchange for legal services.
Feb 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $ 945,000
Nov. 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000.
Business
1 answer:
MrRa [10]3 years ago
8 0

Answer:

Date           Account Title                                            Debit                 Credit

Feb 12        Cash                                                    $18,000,000

                  Common Stock                                                            $2,000,000

                  Paid in Capital in excess of Com-                              $16,000,000

                  mon stock par value      

<u>Working</u>

Cash = 2 million shares * $9 = $18,000,000

Common stock = 2 million * $1 par value = $2,000,000

Date           Account Title                                            Debit                 Credit

Feb 13       Legal expenses                                    $360,000      

                 Common Stock                                                                $40,000

                  Paid in Capital in excess of Com-                                 $320,000

                  mon stock par value

<u>Working </u>

Cash = 40,000 shares * 9 = $360,000

Common Stock = 40,000 * 1 = $40,000

Date           Account Title                                            Debit                 Credit

Feb 13        Cash                                                      $945,000

                  Common stock                                                               $80,000

                  Preferred Stock                                                              $200,000

                  Paid in Capital in excess of Com-                                 $640,000

                  mon stock par value

                  Paid in Capital in excess of Pre-                                   $25,000

                  ferred stock par value

                 

<u>Working:</u>

Common stock = 80,000 shares * 1 = $8,000

Preferred stock = 4,000 shares * $50 = $200,000

Paid in Cap, Common = 80,000 * (9 - 1) = $640,000

Date           Account Title                                            Debit                 Credit

Nov. 15     Equipment                                             $3,688,000

                 Common Stock                                                               $380,000

                 Paid in Capital in excess of Com-                               $3,308,000

                  mon stock par value

<u>Working:</u>

Common stock = 380,000 * $1 = $380,000

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Answer:

$360,308

Explanation:

The computation of the  total amount of interest revenue is shown below:

But before that we have to determine the annuity payment per year which is

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= Fair value ÷ PVIFA for 10% for 5 years

= $991,692 ÷ 5.868

= $169,000

Now Total payments for eight years is

= $169,000 × 8

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The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 t
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The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 to 70 units. Therefore, demand for cameras in this price range is inelastic.

An economic word known as "inelasticity" describes an item or service's unchanging quantity when its price varies. When prices rise, consumers' purchasing patterns essentially stay the same, and when prices fall, those same purchasing patterns still hold true. This is known as inelastic demand. When an item or service's quantity remains constant when its price increases, it is said to be "inelastic. "When a good or service's price increases or decreases, consumers' purchasing patterns essentially stay the same. The same is true when the price of the good or service decreases. The demand for an item or service that is totally inelastic would not fluctuate regardless of price; however, no such good or service exists. Elastic contrasts with inelastic.

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11 months ago
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of So
boyakko [2]

Answer:

Soria Company

Clothing Department

Selling Expense Flexible Budget Report for the month ended October 31, 2017: (Joe Batista)

                                    Budget     Actual      Variance      Comment

Sales in units              10,000      10,000        0                  Neither

Flexed Variable Expenses:

Sales Commission     $2,400     $2,400       0                  Neither

Advertising Exp.         $1,200        $900        $300           Favorable

Travel Expense          $4,000    $4,000        0                  Neither

Free Samples            $2,300     $1,300        $1,000          Favorable

Total Variable            $9,900    $8,600        $1,300          Favorable

Fixed Expenses:

Rent                           $1,700      $1,700         0                   Neither

Sales Salaries            $1,100      $1,100          0                   Neither

Office Salaries            $800        $800          0                  Neither

Depreciation               $400        $400          0                  Neither

Total Fixed               $4,000     $4,000          0                  Neither

Total  Expenses     $13,900    $12,600         $1,300          Favorable

Explanation:

a) Budgeted Variable Costs were flexed as follows:

i) Sales Commission = $1,872/7,800 x 10,000 = $2,400

ii) Advertising Expenses = $936/7,800 x 10,000 = $1,200

iii) Travel Expense = $3,120/7,800 x 10,000 = $4,000

iv) Free Samples = $1,794/7,800 x 10,000 = $2,300

b) The fixed costs could not be flexed as they remain invariable no matter the activity level.

c) Flexible budget is a budget that adjusts or flexes with changes in volume or activity.  It is a more accurate way of assessing performance because it is based on actual volume or activity level unlike a static budget, which remains unchanged.

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Answer:

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In case of sports teams, they will price their seats based on other factors like who is the opponent (current champion v. bad teams), day of the week (weekends v. weekdays) or the time of the season (middle of the season v. near playoffs), etc.

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