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Grace [21]
3 years ago
10

Which most accurately describes the difference between common stock and preferred stock?

Business
2 answers:
maxonik [38]3 years ago
6 0
Common stock is a corporate owned equity. Common stock shareholders have a right to the company's assets after all bondholders, preferred stock/shareholders and other debt holders are paid first and in full. Preferred stock has the owner entity to a fixed amount of money. Those that are preferred shareholders/stockholders receive money before any common stock holders do. They have a higher claim on assets and company earnings. 
liq [111]3 years ago
3 0

Common stock and preferred stock are the two main types of stocks. Common stocks are issued to public to generate a stream of funding to expand the business. The common stocks are also referred to only as stocks.

Preferred stock on the other hand is a share of ownership in a public company.

The following most accurately describes the difference between common stock and preferred stock: Preferred stock pays out earnings at fixed, regular dividends

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Nate is going to the grocery store to pick up a few things. he decides not to write a list and instead repeats the eight items h
Vilka [71]

Rehearsal.

Behavior rehearsal is a technique where thoughts, actions, or words are practiced before needing to put them into practice.

5 0
3 years ago
value of stock is an amount assigned per share by the corporation in its charter. In many states, this amount establishes the mi
zhenek [66]

Answer: par value

Explanation:

The __________ value of stock is an amount assigned per share by the corporation in its charter. In many states, this amount establishes the minimum legal capital, which refers to the least amount that the buyers of stock must contribute or be subject to paying at future dates.

Answer

Par value of stock

Par value for a share refers to the stock value stated in the corporate charter.

6 0
3 years ago
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek
Ann [662]

Answer:

1 Paid rent for May, $5,000.

Dr Rent expense 5,000

    Cr Cash 5,000

3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.

Dr Merchandise inventory 36,000

    Cr Accounts payable 36,000

4 Paid freight on purchase of May 3, $600.

Dr Merchandise inventory 600

    Cr Cash 600

6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.

Dr Accounts receivable 68,500

    Cr Sales revenue 68,500

Dr Cost of Merchandise Sold 41,000

    Cr Merchandise inventory 41,000

7 Received $22,300 cash from Halstad Co. on account.

Dr Cash 22,300

    Cr Accounts receivable 22,300

10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.

Dr Cash 54,000

    Cr Sales revenue 54,000

Dr Cost of Merchandise Sold 32,000

    Cr Merchandise inventory 32,000

13 Paid for merchandise purchased on May 3.

Dr Accounts payable 36,000

    Cr Cash 36,000

15 Paid advertising expense for last half of May, $11,000.

Dr Advertising expense 11,000

    Cr Cash 11,000

16 Received cash from sale of May 6.

Dr Cash 67,130

Dr Sales discounts 1,370

    Cr Accounts receivable 68,500

19 Purchased merchandise for cash, $18,700.

Dr Merchandise inventory 18,700

    Cr Cash 18,700

19 Paid $33,450 to Buttons Co. on account.

Dr Accounts payable 33,450

    Cr Cash 33,450

20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.

Dr Sales revenue 13,230

   Cr Cash 13,230

Dr Merchandise inventory 8,000

    Cr Cost of Merchandise Sold 8,000

20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,0000. The cost of the merchandise sold was $70,000.

Dr Accounts receivbale 110,000

    Cr Sales revenue 110,000

Dr Cost of Merchandise Sold 70,000

    Cr Merchandise inventory 70,000

21 For the convenience of Cresecent Co., paid freight on sale of May 20, $2,300.

Dr Accounts receivable 2,300

    Cr Cash 2,300

21 Received $42,900 cash from Gee Co. on account.

Dr Cash 42,900

    Cr Accounts receivable 42,900

21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.

Dr Merchandise inventory 88,000

    Cr Accounts payable 88,000

24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.

Dr Accounts payable 5,000

    Cr Merchandise inventory 5,000

26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.

Dr Sales revenue 7,500

   Cr Cash 7,500

Dr Merchandise inventory 4,800

    Cr Cost of Merchandise Sold 4,800

28 Paid sales salaries of $56,000 and office salaries of $29,000.

Dr Wages expense 85,000

    Cr Cash 85,000

29 Purchased store supplies for cash, $2,400.

Dr Supplies 2,400

    Cr Cash 2,400

30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.

Dr Accounts receivable 78,750

    Cr Sales revenue 78,750

Dr Cost of Merchandise Sold 47,000

    Cr Merchandise inventory 47,000

30 Received cash from sale of May 20 plus freight paid on May 21.

Dr Cash 110,100

Dr Sales discounts 2,200

    Cr Accounts receivable 112,300

31 Paid for purchase of May 21, less return of May 24.

Dr Accounts payable 83,000

    Cr Cash 82,170

    Cr Purchase discounts 830

       

I prepared a general ledger for May in an excel spreadsheet that I attached.

Download pdf
5 0
3 years ago
1. A Letter of Credit (or LC) is one of the major pillars on which International Trade stands.
Marat540 [252]

Answer:

Letter of Credit (LC)

a) Mbo Limited's bank can issue a letter of credit to Tiffany Anderson Group Ltd.'s bank a credit guarantee by which Mbo's bank guarantees that Mbo Limited will settle Tiffany Anderson Group Ltd in full for the amount involved in their trade relationship.  It is usually used by importers and exporters to settle trade credit.  It is the most acceptable means of settling debts across national boundaries.

b) A diagram is attached.  The procedures are detailed below:

A. A Sales Contract is established between the seller (exporter) and the buyer(importer).

B. The importer makes a request to its bank for issuance of letter of credit.

C. The importer’s bank issues a letter of credit to the exporter’s bank.

D. The exporter’s bank advises on the letter of credit to the exporter.

E. The exporter presents export documents (bill of lading and invoice) to its bank.

F. The exporter’s bank delivers the documents to the importer’s bank.

G. The importer’s bank debits the account of the importer for the stated amount after confirming that the documents are in order.

H. The importer’s bank pays the purchase price to the exporter’s bank.

I. The exporter’s bank credits the exporter’s bank to show payment.  This ends the transaction.

c. The letter of credit guarantees both the Mbo Limited and Tiffany Anderson Group Ltd.  It guarantees and ensures that payment for goods are not paid to Tiffany Anderson Group Ltd until there is evidence that the correct goods and quantity have been shipped by Tiffany Anderson Group Ltd (through the bill of lading).  It also assures Tiffany Anderson Group Ltd of payment for shipped goods since the documents cannot be released to Mbo Limited unless Mbo Limited's account had been debited and the money transmitted to Tiffany Anderson Group Ltd through its bank.

Explanation:

As above.

Download docx
5 0
3 years ago
John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each cont
marishachu [46]

Answer:

<em>2.statute.</em>

Explanation:

<em>The court ruling will be decided by the contractual agreement signed by the three parties. A Limited Liability Agreement will usually be demonstrated by three parties signing a contract together. </em>

The situation will become difficult once, within each partner, there is no written statement about the distribution of profit. Every partner must obtain the suitable yield rate, based on their original investment.

The verdict begins to appear as if it falls into the hands of the state. By considering the Revised Uniform Partnership Act-Section 306. It relies heavily on where the business is registered, authorized, type of business.

However, John is the majority shareholder with 60 per cent of financial and legal accountability[ which is why he owes more to investment return]. It is also partly due to unlawful double tax laws and they are intended to protect the owner / partner of the business.

The confusion could've been avoided if an attorney and bookkeeper were available to describe the process, before the agreement was made and/or written. The condition they submit for incorporation makes a huge difference however, it does not seem to be the circumstance.

8 0
3 years ago
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