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kobusy [5.1K]
3 years ago
13

The following accounts appeared on the trail balance of Elbert Company at December 31, 2017.

Business
1 answer:
denis23 [38]3 years ago
6 0

Answer:

1. $2,566,350

2. $1,608,000

3. $4,648,650

4. $797,850

5. $2,650,800

Explanation:

1. Calculation to determine Total currents assets

Total currents assets=$37,800 + $170,250 – $7,800 + $138,000 + $518,400 + $56,250 + $1,580,250 + $73,200

Total currents assets= $2,566,350

2. Calculation to determine Total property, plant, and equipment

Total property, plant, and equipment=($783,000) + $465,000 + $1,926,000

Total property, plant, and equipment= $1,608,000

3. Calculation to determine Total assets

Total assets=$2,566,350 + $1,608,000 + $281,400 + $192,900

Total assets= $4,648,650

4. Calculation to determine Total current liabilities

Total current liabilities=$192,000 + $34,200 + $156,000 + $5,700 + $409,950

Total current liabilities= $797,850

5. Calculation to determine Total stockholders’ equity

Total stockholders’ equity=$750,000 + $294,000 + $1,125,000 + $318,000 + $163,800

Total stockholders’ equity = $2,650,800

Therefore :

1. Total currents assets $2,566,350

2. Total property, plant, and equipment $1,608,000

3. Total assets $4,648,650

4. Total current liabilities $797,850

5. Total stockholders’ equity $2,650,800

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Claire is severely injured in a car accident. The local hospital cannot treat Claire’s injuries. In order to survive, Claire mus
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Does it matter that the helicopter company <em>performed its obligation</em> under the contract?

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3 years ago
The stockholders' equity accounts of Cyrus Corporation on January 1, 2017, were as follows.
Neko [114]

Answer:

Cyrus Corporation:

Answers to A & B are enclosed in the attachment.

C) Stockholders' Equity:

Authorized Capital 300,000 at $4 par

Issued Common Stock 255,000 units at $4 par = $1,020,000

7% Preferred Stock 3,000 units at $100 par  = $300,000

APIC - Preferred Stock  = $15,000

APIC - Common Stock = $487,000

Retained Earnings = $825,000

Less Treasury Stock, 11,000 units at $4 par = $44,000

Total = $2,603,000

D) i) Payout Ratio = Dividends/Net Income x 100 = $122,000/$280,000 x 100 = 43.57%

ii) Earnings per share = Net Income/Number of Common Stock outstanding = $280,000/244,000 = $1.15

iii) Return on Common Equity = Net Income/Shareholders' Equity x 100

= $280,000/2,588,000 x 100 = 10.82%

Explanation:

a) Journal entries show which account is to be debited and which is to be credited in accordance with the double entry system of bookkeeping.

b) T-Ledger is the tool that accumulates all the transactions of each account in order to arrive at the closing balance for the period.

c) Treasury Stock was treated using the par value method.  This method recognizes the excess paid to repurchase treasury stocks in the Additional Paid-in Capital account.  The other method is the cost method, which deducts the whole costs in the Common Equity.

d) To calculate the payout ratio, earnings per share, and return on equity, we have only considered common stockholders.  They are the common equity holders.  Preferred stockholders are not equity holders.

e) The payout ratio shows the proportion of net income paid out as dividends.

f) Earnings per share are the net income divided by outstanding common stock.  Outstanding of 244,000 shares remained; i.e. (issued common stock of 255,000 minus treasury stock  of 11,000).  This formed the basis for calculating common stock dividends.

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3 years ago
Whatever, Inc., has a bond outstanding with a coupon rate of 5.73 percent and semiannual payments. The yield to maturity is 6.7
coldgirl [10]

Answer:

The market price if the bond has a par value of $1,000 is $887.02 . The right answer is c.

Explanation:

In order to calculate the market price if the bond has a par value of $1,000, we need first to make the following calculations according to given data:

Coupon Rate = 5.73/2 = 2.865%

Interest = 1000 * 2.865% = $ 28.65

YTM = 6.7/2 = 3.35%

Time = 23*2 = 46 periods

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= $28.65 * 23.2942 + 1000 * 0.2196

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Hence, Price of Bond = $887.02

The market price if the bond has a par value of $1,000 is $887.02

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