Answer:
Explanation:
The journal entry is shown below:
Land A/c Dr $243,000
Building A/c Dr $370,000
To Common stock A/c $168,000 (28,000 shares × $6)
To Paid-in capital in excess of par value - common stock $445,000
(Being the issuance of the common stock in exchange of land and building)
Simply we debited the land account and building account and credited the common stock and paid in capital in excess of par value
Answer:
The last one
Explanation:
A SMART goal always start with 'I will', this one starts with 'I want'
Given that the company has to invest $5,000,000.00 custom-made machine with a life span of 2 years that will manufacture a total of 500,000 units in a year. Using the machine will reduce the costs in labor for $5.50/unit and maintenance for $0.95/unit, total of $6.45 per unit savings. For 2 years, the machine can manufacture a total of 1,000,000 units with total savings of $6,450,000.00 for both labor and maintenance. Since the machine's life is only 2 years with no salvage value, the company's total cost savings after the end of 2 years would be $1,450,000.00.
