The average number of times each dollar in the money supply is used to purchase goods and services is called:_____

Otis Thorpe Corporation has 10,000 shares of $100 par value, 8% preferred stock and 50,000 shares of $10 par value common stock

s2008m [1.1K]

Answer:

(a) Cumulative dividend is not reported in Balance sheet.

The dividends in arrears on December 31, 2014 is $240,000

(b) Preferred Stock (Dr.) $400,000

Common Stock (Cr.) $280,000

Paid in capital Excess of par (Cr.) $120,000.

(c) Cash (Dr.) $1,070,000

Preferred Stock (Cr.) $1,000,000

Paid in capital (Cr.) $70,000

Explanation:

a. Cumulative dividends on Preferred stocks are not declared and therefore they are not reported in Balance sheet of a company.

To calculate the dividends in arrears on December 31, 2014,

10,000 shares * $100 par value * 8% preferred stock. * 3 years arrears.

= $240,000.

b. Preferred stock conversion into common stock is recorded as common stock account in balance sheet.

Preferred stock conversion amount is 4,000 shares * $100 par value = $400,000. This is presented as debit entry.

The credit entry will be common stock account with $ 280,000 (4,000 * 7 shares conversion * $10 par value).

The difference in both entries will be recorded as paid in capital as credit.

c. When preferred stock is issued cash is increased so debit account will be cash (10,000 shares * $107 per share) and credit entry will be Preferred Stock account in balance sheet at par value (10,000 shares * $100 par value). The remaining is credited in paid in capital of preferred stock account [10,000 shares * $7 ($107 - $100) per share].

4 0

3 years ago

From 1973 through 2016, the rise in the British price level relative to the U.S. price level is ____ with a rise in the value

babunello [35]

Answer:

the available options for this question are,

A. associated; does not

B. associated; also does

C. not associated; does

and the correct answer is option B. associated; also does.

the purchasing power means the ability of a currency unit to purchase a specific amount of goods and services and this is directly in line with the internal inflation rate of an economy.

Explanation:

8 0

3 years ago

Jerry's Flowers had the following cost information related to its purchases of merchandise. Calculate the total cost of merchand

ch4aika [34]

Answer:

$91,100

Explanation:

Calculation to determine the total cost of merchandise purchased

Using this formula

Total cost of merchandise purchased = Invoice cost of merchandise purchases + Cost of transportation in - Purchase returns and allowances - Purchase discount

Let plug in the formula

Total cost of merchandise purchased= $100,000 + $500 - $400 - $9,000

Total cost of merchandise purchased= $91,100

Therefore the total cost of merchandise purchased is $91,100

3 0

3 years ago

A case study in the chapter analyzed purchasing-power parity for several countries using the price of Big Macs. Here are data fo

goblinko [34]

Answer:

Predicted exchange rate = Country price of Big Mac/ US price of Big Mac

Predicted exchange rate:

Chile = 2,050 / 4.37

= 469.11 Pesos / US dollar

Hungary = 830 / 4.37

= 189.93 Forints / USD

Czech Republic = 70 / 4.37

= 16.01 Korunas / USD

Brazil = 11.25 / 4.37

= 2.57 Real/ USD

Canada = 5.41 / 4.37

= 1.24C$/ US$

According to purchasing power parity, the predicted exchange rate between the Hungarian forint and the Canadian dollar is 153.42 Forint per C$. However, the actual exchange rate is 217 Forint per Canadian Dollar.

Predicted exchange rate = 830 / 5.41 = 153.42 Forint per C$

Actual Exchange rate = 217/1 = 217 Forint per C$

5 0

3 years ago

According to Hackman and Oldham's job characteristics model, what type of employee would most likely be satisfied and perform at

Rasek [7]

The type of employee that would most likely be satisfied and perform at a high level is motivated employee.

<h3>Who is Hackman and Oldham?</h3>

Richard Hackman and Greg Oldham developed a model which itself motivates employees for the jobs.

The model focuses on the perspective that if the job is not monotonous, it can motivates the employee and would not feel discouraged to work.

Hence, the type of employee that would most likely be satisfied and perform at a high level is motivated employee.

Read more on about Hackman and Oldham here: brainly.com/question/13103980

#SPJ1

8 0

2 years ago

The average number of times each dollar in the money supply is used to purchase goods and services is called:______.