Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar. Merchandise (Invoice Amount) Freight Paid by Seller Freight Terms Returns and Allowances (Invoice Amount) a. $6,700 $100 FOB destination, 2/10, n/30 $1,750 b. 3,300 200 FOB shipping point, 1/10, n/30 1,200 a. $fill in the blank 1 b. $fill in the blank 2
Answer and Explanation:
The computation of the amount is shown below:
a. For FOB destination
= Merchandise price - Returns and allowances - discount
= $6,700 - $1,750 - ($6,700 - $1,750 )× 2%
= $6,700 - $1,750 - $99
= $4,851
b. For FOB shipping point
= Merchandise price - Returns and allowances - discount + Freight In
= $3,300 - $1,200 - ($3,300 - $1,200) × 1% + $200
= $3,300 - $1,200 - $21 + $200
= $2,279
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $218,000. Sales (58,000 units) $ 986,000 Costs: Direct materials $ 160,800 Direct labor 240,800 Fixed factory overhead 104,000 Variable factory overhead 150,800 Fixed marketing costs 110,800 Variable marketing costs 50,800 818,000 Pretax income $ 168,000
Answer:
See below
Explanation:
Given the above information, we need the below formula to start with.
Break even point = Fixed costs / Contribution margin
Price = $986,000 / 58,000 = $17
Variable cost = Direct material + direct labor + variable moh + variable marketing costs
= $160,800 + $240,800 + $150,800 + $50,800
= $603,200
Unitary variable cost = $603,200 / 58,000 = $10.4
Fixed costs = Fixed moh + fixed market
= $104,000 + $110,800
= $214,800
Profit = $218,000
Break even point = ($214,800 + $218,000) / ($17 - $10.4)
= $432,800 / $6.6
= 65,576 units
You are given the following information for Huntington Power Co. Assume the company’s tax rate is 40 percent.
Debt:
7,000 6.2 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock: 340,000 shares outstanding, selling for $52 per share; the beta is 1.08.
Market: 8 percent market risk premium and 4.2 percent risk-free rate.
What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)
WACC %
Answer:
WACC= 5.76%
Explanation:
The weighted average cost of capital (WAAC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.
To calculate the weighted average cost of capital, follow the steps below:
Step 1: Calculate the cost of Debt
The yield to maturity to Maturity can be used to work out the cost of debt using the formula below:
YM =( C + F-P/n) ÷ ( 1/2× (F+P))
C- annual coupon,
F- face value ,
P- current price,
n- number of years to maturity
YM - Yield to maturity
C- 6.2%× 1000 =62 , P- 1.05×1000= 1,050, F- 1000
AYM = 62 + (1000-1050)/15 ÷ 1/2× (1000+1050)
= 58.66 ÷ 1025
Yield to maturity =5.7%
Cost of debt= 5.7%
Step 2: Calculate the cost of Equity
Using the CAPM , the cost of equity can be worked out as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 4.2%, Rm-8% β- 1.08
E(r) = 4.2% + 1.08×(8-4.2) = 8.3%
Cost of equity= 8.3%
Step 3: Calculate the market value of sources of finance
Market value of equity = 52×340,000= 17,680,000.00
Market value of debt = 7,000×1,000×105 = 735,000,000.00
Step 4: Calculate the WACC
Source cost Market value cost× market value
Equity 8.3% 17,680,000 1,467,440.00
Debt 5.7% 735,000,000 41,895,000.
752,680,000. 43,362,440.
WACC= (43,362,440/ 752,680,000) × 100
= 5.76%
WACC= 5.76%
Under the retrospective approach to accounting for changes in accounting principles, Multiple select question. prior years' financial statements are revised to reflect the impact of the new accounting principle change. a journal entry is made to adjust asset accounts to what their balances would have been had the new method been used in the current year forward. a journal entry is made to adjust all balance sheets accounts to what they would have been if the new method had always been used. only the current year and future financial statements are revised to reflect the impact of the accounting principle change. a journal is made to adjust the firm's Retained earnings balance to reflect the cumulative effect of the accounting principle change.
Answer:
Under the retrospective approach to accounting for changes in accounting principles,
a journal is made to adjust the firm's Retained earnings balance to reflect the cumulative effect of the accounting principle change.
Explanation:
A change in an accounting principle refers to a change in the accounting method. An example is using a different depreciation method (straight-line instead of double-declining method) or switching between Weighted-Average to LIFO inventory valuation method. Where there is a change in accounting principle, the change is applied retrospectively to the earliest period when financial statements are presented. The purpose is to ensure that the comparative financial statements reflect the new application of the accounting principle just as the current financial statements do. However, this cannot be done if it were impractical.
I am currently stuck on an application question on why I left my job. How would I awswer this question if I worked at an amusement park for two summers but left the first time because of ride issues and bronchitis/ and the second time I left due to drivers ed interfering with my work schedule, including not being able to get to and from work. Thank you for your time.
Answer:
Give the reasons that you wrote
Explanation:
If I were you I would put the reasons that you wrote above but just make it sound more professional. Ex: I left my job at (name of amusement park) in (month) of (year) due to health issues.
The Cole Beverage Company (CBC) has a soft drink product that has a constant annual demand of 3,600 cases per year. A case of this soft drink product from Supplier A costs CBC $4 and carrying cost is charged at 25% of purchase cost (that is, $1 per case per year). Ordering costs are estimated to be $32 per order placed. Based on these information, the Economic Order Quantity (EOQ) for this soft drink product is a. 480 b. 240 c. 120 d. Not enough information given to answer this question
Answer:
a. 480
Explanation:
The computation of the economic order quantity is given below:
[tex]EOQ = \sqrt{\frac{2\times annual \ demand \times ordering\ cost }{carrying \ cost}} \\\\= \sqrt{\frac{2\times 3600\times \$32}{\$1} }[/tex]
= 480 units
The carrying cost could be determined below:
= $4 × 25%
= $1
hence, the carrying cost is $1
Therefore the economic order quantity is 480
Thus, the correct option is a.
Consider three investment plans at an annual rate of 9.38%.
Investor A: Invest $2000 per year for the first 10 years of your career. After that, make no further investments, but reinvest the amount accumulated for the next 31 years.
Investor B: Do nothing for the first 10 years. Then start investing $2000 per year for the next 31 years.
Investor C: Invest $2000 per year for the entire duration.
Note that all investments are made at the beginning of each year, the first deposit will be made today at the beginning of age 25 (n=1), and you want to calculate the balance at age of 65 (n=41).
Answer:
Investor A = $545216 .
Investor B = $352377
Investor C = $897594
Explanation:
Annual rate ( r ) = 9.38%
N = 41 years
Calculate the balance at age of 65
1) For Investor A
balance at the end of 10 years
= $2000 (FIA, 9.38 %, 10) (1 + 0.0938) ≈ $33845
Hence at the end of 65 years ( balance )
= $33845 (FIP, 9.38 %, 31) ≈ $545216 .
2) For investor B
at the age of 65 years ( balance )
= $2000 (FIP, 9.38%, 31) = $322159 x (1 + 0.0938) ≈ $352377
3) For Investor C
at the age of 65 years ( balance )
= $2000 (FIP, 9.38%, 41) = $820620 x (1 + 0.0938) ≈ $897594
For a particular flight from Dulles to SF, an airline uses wide-body jets with a capacity of 370 passengers. It costs the airline $4,000 plus $145 per passenger to operate each flight. Through experience the airline has discovered that if a ticket price is $T, then they can expect (370−0.56T) passengers to book the flight. Determine the ticket price, T, that will maximize the airline's profit
Answer:
The ticket price, T, that will maximize the airline's profit is $402.86.
Explanation:
This can be determined as follows:
Number of passenger = (370−0.56T)
Cost = 4000 + (145 * Number of passenger) = 4000 + 145(370−0.56T) = 4000 + 53,650.00 - 81.20T = 57650 – 81.20T
Revenue = T * Number of passenger = T(370 – 0.56T) = 370T – 0.56T^2
P = Profit = Revenue – Cost = 57650 – 81.20T – (370T – 0.56T^2) = 57650 – 81.20T – 370T + 0.56T^2 = 57650 - 451.20T + 0.56T^2 ……………….. (1)
Differentiating equation (1) with rest to T, equate to 0 and solve for T, we have:
P’ = –451.20 + 1.12T = 0
1.12T = 451.20
T = 451.20 / 1.12
T = 402.86
Therefore, the ticket price, T, that will maximize the airline's profit is $402.86.
what is market management
Answer:
Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities.
Answer:
Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities.
Question 9 At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter. Which of the following items would be increased by this advertising adjusting entry? (check all that apply) 1 point Net Income Cash Cost of Goods Sold Prepaid Advertising SG&A Expense
Answer:
Sg&a expense
Explanation:
When you use up insurance, you debit advertising expense and credit prepaid advertising.
‘you don’t increase income since it’s an expense
it shouldon’t go thru cost of goods sold
you reduce not increase prepaid advertising
Who is responsible for protecting the environment?
a.
Government
b.
Employers
c.
Employees
d.
Everyone
Answer:
Answer D
Explanation:
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Why is efficiency an important economic goal?
Explanation:
Efficiency reduces hunger and malnutrition because goods are transported farther and quicker. Also, advances in efficiency allow greater productivity in a shorter amount of time. Efficiency is an important attribute because all inputs are scarce.
Efficiency is an important Economic goal because it reduces the cost of production, gives highest output with less input and aims at minimum wastage of resources which in return reduces cost of goods and services for consumers.
What is Efficiency?Efficiency is the maximum level of performance that requires the fewest inputs and produces the greatest amount of output.
Economic efficiency is the distribution or allocation of all goods and factors of production in an economy to their most valued uses while reducing or eliminating waste.
What is Economic goal?Every country in the globe strives to achieve specific goals in order to become an ideal and stable economy. Countries put a lot of effort towards achieving these objectives. Every nation faces unique problems brought on by many variables that impede its development and expansion.
Hence, governments try to retain certain targets and seek to reach a given degree of growth within a year. These objectives are known as macroeconomics objectives or Economic goal.
Economic growth, full employment, price stability, economic freedom, equity, efficiency, stable financial market are some of the Economic goals that a country strive to achieve to grow and develop as whole.
scarcity is one of the important factor that impacts the growth of the country and its goals. A type of resource's scarcity can reduce profitability, slow economic growth, and raise prices. Businesses modify their operations to be as effective as feasible given their conditions using their understanding of a resource's scarcity. efficiency plays vital role in using those scarce resources to produce more output, in this way efficiency is very useful and important in a country to achieve its economic goals.
Supporting answer
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The calculation of the payback period for an investment when net cash flow is uneven is:
Answer:
Determining when the cumulative total of net cash flows reaches zero.
Explanation:
Banks offer various types of accounts, such as savings, checking, certificate of deposits, and money market, to attract customers as well as meet their specific needs.
a. True
b. False
Answer:
it's false.. because those are not the various types of account.
Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company.
Jan. 1 Inventory 100 units at $5 each
Jan. 4 Sale 80 units at $8 each
Jan. 11 Purchase 150 units at $6 each
Jan. 13 Sale 120 units at $8.75 each
Jan. 20 Purchase 160 units at $7 each
Jan. 27 Sale 100 units at $9 each
Fong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.
Required:
a. Assume Fong Sai-Yuk uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 110 units.
b. Compute gross profit using the periodic system.
c. Assume Fong Sai-Yuk uses a perpetual system. Prepare all necessary journal entries.
d. Compute gross profit using the perpetual system.
Answer:
Fong Sai-Yuk Company
a. Journal Entries:
Debit Purchases $2,020
Credit Accounts payable $2,020
To record purchases of goods on account for the month.
Debit Accounts receivable $2,590
Credit Sales revenue $2,590
To record the sale of goods on account for the month.
Debit Sales revenue $2,590
Credit Income Summary $2,590
To close the account to the income summary.
Debit Income Summary $2,790
Credit Purchases $2,020
Credit Ending Inventory $770
To close the accounts to the income summary.
b. Computation of the Gross Profit using the periodic system:
Sales revenue $2,590
Cost of goods:
Opening inventory $500
Purchases 2,020
Less Ending inventory 770 1,750
Gross profit $840
c. Using the Perpetual system:
Journal Entries:
Jan. 4 Debit Accounts receivable $640
Credit Sales revenue $640
To record the sale of goods on account.
Jan. 4 Debit Cost of goods sold $400
Credit Inventory $400
To record the cost of goods sold.
Jan. 11 Debit Inventory $900
Credit Accounts payable $900
To record the purchase of goods on account.
Jan. 13 Debit Accounts receivable $1,050
Credit Sales revenue $1,050
To record the sale of goods on account.
Jan. 13 Debit Cost of goods sold $700
Credit Inventory $700
To record the cost of goods sold.
Jan. 20 Debit Inventory $1,120
Credit Accounts payable $1,10
To record the purchase of goods on account.
Jan. 27 Debit Accounts receivable $900
Credit Sales revenue $900
To record the sale of goods on account.
Jan. 27 Debit Cost of goods sold $650
Credit Inventory $650
To record the cost of goods sold.
Jan. 31:
Debit Income Summary $1,750
Credit Cost of goods sold $1,750
To close the account to the income summary.
Debit Sales Revenue $2,590
Credit Income Summary $2,590
To close the account to the income summary.
d. Computation of the gross profit:
Sales revenue $2,590
Cost of goods 1,750
Gross profit $840
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Unit Price Total Cost Total Revenue
Jan. 1 Inventory 100 $5 $500
Jan. 4 Sale 80 $8 $640
Jan. 11 Purchase 150 $6 900
Jan. 13 Sale 120 $8.75 1,050
Jan. 20 Purchase 160 $7 1,120
Jan. 27 Sale 100 $9 900
Total goods available 410 $2,520
Total goods sold 300 $2,590
Ending inventory 110
Using FIFO under periodic system:
Ending inventory = 110 * $7 = $770
Cost of goods sold = Cost of goods available minus cost of ending inventory
= $2,520 - $770
= $1,750
Using FIFO under perpetual system:
Cost of goods sold:
Jan. 4 Sale $400 (80 * $5)
Jan. 13 Sale 700 (20 * $5 + 100 * $6)
Jan. 27 Sale 650 (50 * $6 + 50 * $7)
Total cost of goods sold $1,750
Ending inventory = $2,520 - $1,750 = $770
briefly describe the term budget
Answer:
A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities, and cash flows. Companies, governments, families, and other organizations use it to express strategic plans of activities or events in measurable terms.
As the full-time bookkeeper, your job is to make any corrections to the general ledger accounts. Each correction needs the reason for the change and the effect on each account, whether it is an increase or decrease. For the third time this month, a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes. The correcting entry will record a credit to the Cash account and a debit to the Sales account. Your co-worker has offered to buy you dinner for fixing this mistake.
Required:
What should you investigate before making a decision about the correcting entry?
Answer: See explanation
Explanation:
Based on the information given, we are informed that the co-worker has recorded a cash receipt twice and wants the full time bookkeeper to record a correcting entry that will reverse the mistakes.
Before making a decision about the correcting entry, it is necessary to check the entry and cross check the balances for sales and cash. One has to also check the receipts and every other necessary details in order to make sure that the transaction is genuine and not fraudulent.
After the through check, if the person is sure and confident that everything is okay, then the correcting entry can be made.
Wildhorse Company issued $500,000, 5%, 20-year bonds on January 1, 2020, at 102. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
A. Dr Cash $510,000
Cr Bonds Payable $500,000
Cr Premium on Bonds Payable $10,000
B. Dr Interest expense $24,667
Dr Premium on bonds payable$333
Cr Interest Payable $25,000
C. Dr Interest Payable $25,000
Cr Interest Expense $25,000
D. Dr Bond payable $500,000
Cr Cash $500,000
Explanation:
(a) Preparation of the journal entry to record the issuance of the bonds
Dr Cash $510,000
($500,000 x 1.02 = $510,000)
BCr BondsPayable $500,000
Cr Premium on Bonds Payable $10,000
($510,000-$500,000)
(To record the issuance of the bonds)
B. Preparation of the journal entry to record Accrual of interest and the premium amortization
Dr Interest expense $24,667
($25,000-$333)
Dr Premium on bonds payable$333
($10,000/30)
Dr Interest Payable $25,000
($500,000*5%)
(To record Accrual of interest and the premium amortization)
C. Preparation of the journal entry to record the payment of interest
Dr Interest Payable $25,000
($500,000*5%)
Cr Interest Expense $25,000
(To record the payment of interest)
D. Preparation of the journal entry to record the bonds at maturity
Dr Bond payable $500,000
Cr Cash $500,000
(To record the bonds at maturity)
IKEA has essentially changed the way people shop for furniture. Discuss the pros and cons of this strategy, especially as the company plans to continue to expand in places like Asia and India.
Answer:
um
Explanation:
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Carolyn owes $9,620 on her Electronics Boutique credit card with a 16.4% interest rate. She owes $3,970 on her Miscellaneous Goods credit cards which has a 24.6% interest rate. What is the total monthly payment needed to pay off both cards in three years, assuming she makes fixed payments and does not charge any more purchases with the card
Answer:
377.50
Explanation:
Answer: 497.12
Explanation: just got it right on the test
The use of slang creates which type of communication barrier?
A.
language barriers
B. wrong communication channel
C.
receiver inattention
D.
inadequate feedback
E.
unclear words
Answer:
letter A just my suggestion ☺️☺️
Given the restrictions on collusion in the US, what techniques do Oligopoly firms use to stay
competitive and in business?
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The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225,000. Required: Prepare a sales activity variance analysis
Answer:
Sales volume variance $26,250 Favorable
Explanation:
The sales volume variance is calculated as the difference between the budgeted and the actual sales volume multiplied by he standard contribution per unit
Units
Budgeted sales units 225,000
Actual sales units 230,000
Sales volume 5,000 favorable
Standard contribution(9-3.75) × $5.25
Sales volume variance $ 26,250
Sales volume variance $26,250 Favorable
Note standard contribution = standard selling price - standard variable cost
Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. Asian Lamp expects to sell the lamps for $25 each. January sales is projected at 16,000 lamps. In going from the sales budget to the production budget, adjustments to the sales budget need to be made for
Answer: b. finished goods inventories,
Explanation:
To be able to come up with the Production budget, the sales budget will need to be adjusted for finished goods inventories to come up with the total production figure.
For instance:
Production Budget
Sales in units XXX
Add Ending finished goods inventories XXX
Less Opening finished goods inventories (XXX)
Production units for period XXX
Jaheem's business sells a single product. The following information was gathered from Jaheem's records: Price $24.00 per unit Variable costs are 61% of sales price The company's fixed costs are $400,000 annually Current sales total is 41,000 units Target profit before tax $22,000 Budgeted sales total is 48,000 units By how much will profit increase with the sale of each unit in Jaheem's business
Answer:
See below
Explanation:
With regards to the above, Jaheem's business profit increase is calculated as
= Fixed cost + Desired profit/Contribution margin
Given that;
Fixed cost = $400,000
Desire profit = $22,000
Contribution margin = $9.4
= $400,000 + $22,000/($24 - $14.6)
= $422,000/$9.4
= $44,894
Therefore, increase on profit
= $44,894 - $22,000
= $22,894
Stock Y has a beta of 1.8 and an expected return of 18.2 percent. Stock Z has a beta of .8 and an expected return of 9.6 percent. If the risk-free rate is 5.2 percent and the market risk premium is 6.7 percent, the reward-to-risk ratios for Stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, Stock Y is and Stock Z is :__________. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
The reward-to-risk ratios for Stocks Y and Z are 7.22 and 5.50 percent, respectively. Since the SML reward-to-risk is 6.70 percent, Stock Y is undervalued and Stock Z is overvalued.
Explanation:
Market risk premium is 6.7%
Reward-to-risk ratio of Stock = (Expected return of the Stock - Risk-free rate) / Beta of the Stock
Using equation (1), we therefore have:
Reward-to-risk ratio of Stock Y = (18.2% - 5.2%) / 1.8 = 7.22%
Reward-to-risk ratio Stock Z = (9.6% - 5.2%) / 0.8 = 5.50%
Since the β of the market is one, it implies that SML reward-to-risk is 6.70 perecent.
Therefore, we have:
The reward-to-risk ratios for Stocks Y and Z are 7.22 and 5.50 percent, respectively. Since the SML reward-to-risk is 6.70 percent, Stock Y is undervalued and Stock Z is overvalued.
Micropolois Technology began a new development project in 2017. The project reached technological feasibility on September 1, 2018, and was available for release to customers at the beginning of 2019. Development costs incurred prior to September 1, 2018, were $4,200,000 and costs incurred from June 30 to the product release date were $1,800,000. The 2019 revenues from the sale of the new software were $3,000,000, and the company anticipates additional revenues of $12,000,000. The economic life of the software is estimated at three years. Amortization of the software development costs for the year 2019 would be:
Answer: $600,000
Explanation:
The Development costs prior to the project reaching technological feasibility are to be expensed according to U.S. GAAP.
Costs incurred after the point of technological feasibility was reached however, will be amortized over the life of the asset.
Life of asset is 3 years and costs incurred would be $1,800,000.
Amortization amount in 2019 would be:
= 1,800,000 / 3
= $600,000
During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share.
Required:
Prepare the appropriate journal entries to record each transaction.
Feb. 12 Sold 2 million common shares, for $9 per share.
Feb 13 Issued 40,000 common shares to attorneys in exchange for legal services.
Feb 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $ 945,000
Nov. 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000.
Answer:
Date Account Title Debit Credit
Feb 12 Cash $18,000,000
Common Stock $2,000,000
Paid in Capital in excess of Com- $16,000,000
mon stock par value
Working
Cash = 2 million shares * $9 = $18,000,000
Common stock = 2 million * $1 par value = $2,000,000
Date Account Title Debit Credit
Feb 13 Legal expenses $360,000
Common Stock $40,000
Paid in Capital in excess of Com- $320,000
mon stock par value
Working
Cash = 40,000 shares * 9 = $360,000
Common Stock = 40,000 * 1 = $40,000
Date Account Title Debit Credit
Feb 13 Cash $945,000
Common stock $80,000
Preferred Stock $200,000
Paid in Capital in excess of Com- $640,000
mon stock par value
Paid in Capital in excess of Pre- $25,000
ferred stock par value
Working:
Common stock = 80,000 shares * 1 = $8,000
Preferred stock = 4,000 shares * $50 = $200,000
Paid in Cap, Common = 80,000 * (9 - 1) = $640,000
Date Account Title Debit Credit
Nov. 15 Equipment $3,688,000
Common Stock $380,000
Paid in Capital in excess of Com- $3,308,000
mon stock par value
Working:
Common stock = 380,000 * $1 = $380,000
Why is pricing such an important function of marketing
Answer:
Capitalism
Explanation:
We live in a Society