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valkas [14]
3 years ago
11

H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H

. Tillman a legal fee of approximately $12500 by issuing 2900 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $4.80 per share. Given this information, the journal entry for J. Laney. to record this transaction is:
Business
1 answer:
babunello [35]3 years ago
8 0

Answer:

The journal entry for J. Laney. to record this transaction is:

Legal Expenses $13,920 (debit)

Common Stock $2,900 (credit)

Share Premium $11,020 (credit)

Explanation:

The Common Stocks are carried at par value of $1. This means that any price paid in excess of the par value is accounted for in the Share Premium Account.

The Common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.

Share Premium = ($4.80 - $1.00) × 2900 shares

                          = $3.80 × 2,900

                          = $11,020

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Mcmurtry Corporation sells a product for $110 per unit. The product's current sales are 12,200 units and its break-even sales ar
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Answer:

The correct answer is A.

Explanation:

Giving the following information:

Mcmurtry Corporation sells a product for $110 per unit. The product's current sales are 12,200 units and its break-even sales are 10,614 units.

<u>The margin of safety is the number of units or amount of dollars that provide genuine profit to the company. It is the "margin" that gives room to try new strategies</u>.

It is calculated using the following formula:

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio=  (12,200 - 10,614) / 12,200

Margin of safety ratio= 0.13=13%

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3 years ago
"Diminishing marginal​ returns" refer to a situation in which the ______.A. average product of the last worker hired is less tha
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Answer: C. marginal product of the last worker hired is less than the marginal product of the previous worker hired

This statement is correct because marginal product refers to the increase in the production, when 1 worker is added to the production process. Diminishing marginal returns set in when adding one extra worker increases the production less than the previous worker did.

Explanation:

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"the fact that having capital punishment "on the table" causes many people to confess to crimes in order to have death "taken of
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Modified Accelerated Cost Recovery System (MACRS) (LO 7.4) Mike purchases a new heavy-duty truck (5-year class recovery property
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Answer: See explanation

Explanation:

a. The amount of depreciation for 2017 using financial accounting straight-line depreciation will be:

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3 years ago
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adell [148]

Answer:

The correct answer is letter "A": utilitarianism.

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