Answer:
The answer is: A) New resources are provided when shares of stock are sold by the corporation to the initial owners.
Explanation:
When an initial public offering (IPO) is carried out, the corporation receives new resources ($) by selling shares of stock to initial owners. An IPO is a type of primary market since stocks are issued for the first time. Primary markets are also known as new issue markets since stocks, bonds or other types of securities are issued there for the first time.
Answer: See explanation
Explanation:
The effect on Dodd's retained earnings as a result of the above transaction will be calculated as:
Common stock = 115000
Percent of stock dividend = 10%
Stock dividend = 10% × 115000 = 11500
Price per share = $30
Stock dividend = $30 × 11500 = $345000
Therefore, there'll be a $345000 decrease on Dodd's retained earnings. The options given are incorrect.
Assuming, the common stock was 120,000, then the answer will have been (120,000 × $3) = $360,000 decrease.
The answer to the question above is letter C. The income that is not used for consumption is called a SAVINGS. Saving consist of the amount left over when the cost of a person's consumer expenditure is subtracted from the amount of disposable income he or she earns.
Answer:
Part A. $8514
Part B. Purchase Return
Explanation:
Part A. The cash required to payment is the inventory purchases after the sales return. And here the inventory purchases after purchase return are:
Purchases after purchase return = $9,900 - $1,300 = $8600
Now the discount available is 1%
So this implies:
Cash required = $8600 * (100-1)% = $8,514
Part B. Now the double entry under perpetual inventory system would be:
Dr Accounts Payables $86
Cr Purchase Return $86