What are three elements that can be shared by subdocuments in a master document?

Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common

Fantom [35]

Answer:

Permabilt Corp.

a. Journal Entries:

Debit Cash $26,250,000

Credit Common stock $26,250,000

To record the issuance of 750,000 shares at $35 per share.

2. Debit Cash $56,700,000

Credit Preferred stock $54,000,000

Credit Additional paid-in capital- preferred stock $2,700,000

To record the issuance of 540,000 shares at $105 per share.

3. Debit Cumulative preferred stock dividends $12,150,000

Debit Common stock $2,850,000

Dividends Payable $15,000,000

To record the declaration of dividends.

b. Preferred shareholders will receive $12,150,000 out of the $15 million declared dividends during 2021 ($4,050,000 for each year)

c. Common stock dividends per share = $3.80 ($2,850,000/750,000)

Explanation:

a) Data and Calculations:

Authorized share capital:

Common stock = 2,000,000 shares of no-par value

7.5% cumulative, preferred stock = 800,000 shares at $100 par value

Issued share capital:

Common stock, 750,000 at $35 = $26,250,000

Cash $26,250,000 Common stock $26,250,000

Preferred stock, 540,000 at $105 = $56,700,000

Cash $56,700,000 Preferred stock $54,000,000 Additional paid-in capital $2,700,000

Declared Dividends = $15,000,000

Cumulative preferred stock dividends for 3 years

= $12,150,000($4,050,000 * 3)

Common stock = $2,850,000 ($15,000,000 - $12,150,000)

4 0

3 years ago

Using an example, explain the relationship between human resources and business objectives.

Phoenix [80]

Answer:

Human resources are critical in achieving business objectives. The humans carry out the actions and strategies to achieve business objectives. An example would be a baseball team needing players to achieve its goals.

Explanation:

6 0

3 years ago

How do taxes influence responsible financial planning? Discuss some examples of how taxes may influence a financial plan.

insens350 [35]

Answer:

I will discuss how taxes affect the financial planning of individuals, not businesses.

The whole idea of responsible financial planning is to maximize an individual's wealth, and in order to be able to do this you generally need to minimize your tax liabilities. It doesn't mean that you shouldn't pay your taxes, but rather that the taxes that you owe should be lower.

An example about how this works is when you you invest in stocks. All dividends are taxed as ordinary income, but if you hold a stock for more than one year and then sell it making a profit, you will be taxed at a much lower rate. That is why it is always a good idea to hold stocks long enough for long term capital gains rate to apply. E.g. if you are married and your ordinary taxable income is less than $80,000, you pay 0 taxes for long term capital gains. Even couples earning up to $496,600 will pay only 15%, while their marginal tax rate on ordinary income is 35%. Remember that every cent that you save on taxes, increases your wealth, and a 20% difference is a lot.

Another example are IRA accounts. Contributions to traditional IRA accounts lower your taxable income, which is great. Any interest gained by the account will not be taxed until you retire. This allows your money to grow tax free. E.g. you have $100,000 to invest and you an earn 8% per year. If you do not pay any taxes, in 10 years you will have $100,000 x 1.08¹⁰ = $215,894.50. But if you pay a 24% tax rate on your gains, then you will only have $100,000 x [1 + (0.08 x 0.76)]¹⁰ = $180,441.

In order to reduce your taxes, you might sometimes need to postpone or accelerate some expenses or donations. E.g. you generally donate $3,000 to church, it is December and you are getting ready to sign a check. But you then realize that your current tax bracket is 12%, but since you got a raise, next year you will pay 24%. It is a good idea to write the check on January 2, since you will save $3,000 x (24% - 12%) = $360 in future taxes.

3 0

3 years ago

Read 2 more answers

At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock bought and plac

valina [46]

Answer: See attachment

Explanation:

a. What is Poplock’s year 1 depreciation expense for each asset?

See attachment. Note that the depreciation for the assets were calculated as the original basis × the rate. e.g for Computer equipment, the Depreciation was, the original basis of $5000 × the rate of 20% which equals $1,000.

b. What is Poplock’s year 2 depreciation expense for each asset?

Check attachment.

Depreciation for computer = $1600

Depreciation for day grooming furniture = $1714

Depreciation for popup truck = $3200

Depreciation for commercial building = $6923

6 0

3 years ago

Selected data for the current year ended December 31 are as follows:

Katarina [22]

Answer and Explanation:

The computation is shown below:

Cash paid for Merchandise

Cost of Goods Sold $620,000

Add: Ending inventory $42,500

Less: Beginning inventory $68,000

Purchases made during the year $594,500

Add: Opening balance of accounts payable $135,000

Less: Ending balance of accounts payable $90,000

Cash paid for Merchandise $639,500

Cash paid for Operating Expenses

Operating expenses $142,000

Add: Ending Prepaid expense $23,000

Less: Beginning prepaid expense $20,000

Add: Beginning balance of accrued expenses $22,000

Less: Ending balance of accrued expenses $29,500

Cash paid for operating expenses $137,500

3 0

3 years ago