The repercussion of excessive tax withholding is that the tax payable will remain unpaid.
What is excessive tax withholding?A tax withholding means the amount of income tax that employer withholds from its employee's income to the payment of tax in government coffers in the employee's name
In conclusion, the repercussion of excessive tax withholding is that the tax payable will remain unpaid.
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Answer:
Refund
Explanation:
The IRS states that a refund will happen if this is the case.
The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $56,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Year Cash Flow
1 $23,000
2 23,000
3 25,000
4 28,000
5 16,000
Required:
a. If the cost of capital is 10 percent, what is the net present value of selecting a new machine?
b. What is the internal rate of return?
Answer and Explanation:
The computation is shown below;
a. the net present value is
Year cash flow factor at 10% Discounted cash flows
0 -$56,000 1 $56,000
1 $23,000 0.9091 $20,909.09
2 $23,000 0.8264 $19,008.26
3 $25,000 0.7513 $18,782.87
4 $28,000 0.6830 $19,124.38
5 $16,000 0.6209 $9,934
Net present value $31,759.34
b. The internal rate of return is
Here we apply the formula
= IRR()
After this, the irr is 30.75%
1. A location’s risks can make a difference in premium costs. Think about two houses, one built on a mesa (a high desert plateau) in Arizona and the other built on the Louisiana coast (below sea level). Which location is more likely to experience flooding? Which house would have lower premiums for flood insurance?
Answer:
House with lower premiums for flood insurance -- house built on Mesa in Arizona.
Location more likely to experience flooding --- Louisiana coast which is below sea level.
Explanation:
Insurances provides a protection in exchange for a amount of fee known as a premium. An insurance is a policy or an agreement where the person availing the policy gets a financial protection against the calamities or losses that occurs to the person as promised by the other party. But for that the person needs to a pay a fee called as the premium to the other party.
In the context, the house which is built on the mesa, which is a high desert plateau in Arizona is less prone to floods. Since the location of the house is in a high altitude place, it is less likely to experience floods as compared to the other place in Louisiana coast which is below sea level and is more likely to experience flooding because of its location near the coast and elevation.
Therefore, the house located in Arizona will have to pay lower premiums for flood as there will be less likely to occur flood in the region of the high elevation of the place.
And since house built on Louisiana coast is below sea level, it will more likely to experience floods.
FINANCIAL LITERACY
WILL MARK BRAINLIEST PLS HELP ASAP!!
Answer:
i dk
Explanation:
tthanks for the points tho
Sales $419,000 Cost of goods sold (all variable) $175,500 Total variable selling expense $23,600 Total fixed selling expense $17,200 Total variable administrative expense $15,400 Total fixed administrative expense $31,400 The contribution margin for October is: Multiple Choice $370,400 $243,500 $204,500 $155,900
Answer:
$204,500
Explanation:
contribution margin = sales - variable cost
= $419,000 - ($175,500 + $23,600 + $15,400)
= $204,500
The contribution margin for October is: $204,500
Such factors as having one's own tools and workplace, having a number of customers, setting one's own work schedule and having the power to determine how a job will be carried out indicate that this person is likely:_______.
a. An employee An incidental employee
b. An employee by ratification
c. A gratuitous employee
d. An independent contractor
Answer:
d. An independent contractor
Explanation:
The factors mentioned in the question above refer to an independent contractor, that is, a worker who is self-employed and controls his own work that is not regulated by an employer.
An independent contractor has the autonomy and freedom to coordinate his work according to his own needs, that is, he can offer his service to a clientele choosing his place of work, schedule and the power to finish how the work will be done.
Some examples of independent contractors may be entrepreneurs, lawyers, doctors, dentists, traders, etc.
The risk-free rate is 3%. MCD currently prices at $25. The Delta of a 1-year at-the-money European call on MCD is 0.5. John has a portfolio made of the following: (1) One bond maturing in 1 year paying $1000. (2) Three 1-year at-the-money European MCD calls. (3) Two 1-year at-the-money European MCD puts. How many shares of MCD should John long (or short) to make his portfolio delta-neutral
Answer:
Short 1.5 shares
Explanation:
Given data :
Risk free rate = 3%
current price ( market price ) = $25
Delta of 1-year at money European call on MCD = 0.5
Determine how many shares of MCD John should either Long or short to achieve a delta-neutral
use the relation below
4 * 0.5 + 1 ( 0.5 - 1 ) + x = 0
x ( number of shares ) = - [ 4 * 0.5 + 1 ( 0.5 - 1 ) ]
= - 1.5 shares
negative ( - ) means MCD should short 1.5 shares
A customer has requested that Lewelling Corporation fill a special order for 2,200 units of product S47 for $38 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $16.90:
Direct materials $ 4.60
Direct labor $ 4.00
Variable manufacturing overhead $ 1.70
Fixed manufacturing overhead $ 6.60
Unit product cost $ 16.90
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $1.90 per unit and that would require an investment of $16,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:_________
a) $40,760
b) ($15,700)
c) $16,200
d) ($2,000)
Furniture Face Lift refinishes old wood furniture. Their process for refinishing chairs has 8 workers and 4 stations. Each chair starts at the Stripping station, then goes to Priming, then to Painting and finally to Inspection. Where there are multiple workers within a station, each worker works independently on his/her own chair. Assume inventory buffers are allowed between each station and each station has inventory to work on at the beginning of the day
Station Staffing Processing time (hours per chair per worker)
Stripping 3 2.5
Priming 2 1.5
Painting 3 1.75
Inspection 1 0.8
Suppose at the start of the day there is no inventory of chairs in the shop. That is, there are no chairs within any of the stations or between them in any buffer. A truck loaded with 10 chairs arrives. How many hours will it take them to complete these 10 chairs?
Answer:
13.19 hours
Explanation:
Station Staffing Processing time (Hours Capacity = Staffing /
per chair per worker) Processing time
Stripping 3 2.5 1.2
Priming 2 1.5 1.33
Painting 3 1.75 1.714
Inspection 1 0.8 1.25
Stripping has the lowest capacity, hence it will be having bottleneck, thus the process capacity is 1.2.
Total time to produce the 1st chair = 2.5 + 1.5 + 1.75 + 0.8
Total time to produce the 1st chair = 6.55 hours
Time to produce subsequent chair = 1/1.2
Time to produce subsequent chair = 0.83 hrs
Total time taken to produce 10 chairs = 6.55 hours + 0.83 hrs*8 Workers
Total time taken to produce 10 chairs = 6.55 hours + 6.64 hours
Total time taken to produce 10 chairs = 13.19 hours
In a large company, a small team of employees is tasked with conducting monthly tests of security controls. Each month, they select a small number of controls, attempt to exploit vulnerabilities, and report results to management. This is an example of:
Answer:
Vulnerability scanning
Explanation:
Vulnerability scanning is aimed at identifying and classifying system weaknesses that can be exploited in a computer network or a company system.
The vulnerabilities are reported to management and this will guide countermeasures to prevent future security breaches.
So in the scenario where a small team of employees is tasked with conducting monthly tests of security controls by selecting a small number of controls and attempting to exploit vulnerabilities, they are doing vulnerability scanning.
Answer:
The question is incomplete, the options are missing. The options are the following:
a) Vulnerability scanning.
b) Red team exercises.
c) Penetration testing.
d) Risk analysis.
And the correct answer is the option B: Red team exercises.
Explanation:
To begin with, in the area of cybersecurity and business management the term known as "Red Team" refers to method or technique used by the larges companies in the world whose main purpose is to complete exercises of cybersecurity breaches in where the "red team" has to attack the company in order to reach for the vulnerabilities of the organization's most important systems. In that situation, a blue team is the one in charge of defending the business' information. And it is all done with the purpose of getting feedback about what the real danger could be in a situation in the reality.
The following data relate to the direct materials cost for the production of 2,200 automobile tires:
Actual: 51,700 lbs. at $1.70 $87,890
Standard: 50,700 lbs. at $1.75 $88,725
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
Direct Materials Price Variance __________ $
Direct Materials Quantity Variance __________ $
Total Direct Materials Cost Variance __________ $
b. The direct materials price variance should normally be reported to the __________ . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the__________. When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the__________.
Answer:
A) - $2585
$1750
-$835
B) Purchasing department , Purchasing supervisor , purchasing department
Explanation:
A) calculations for direct material price variance , quantity variance and total direct materials cost variance
Direct material price variance = 51,700 * ( 1.7 - 1.75 ) = -$2585.
Direct material Quantity variance = 1.75 ( 51700 - 50700 ) = $1750
Total direct materials Cost variance = 87890 - 88725 = - $835 a
B)
The direct materials price variance should normally be reported to the Purchasing department.
When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the production supervisor
When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the Purchasing department
According to the results of the 2019 expatriate survey, which of the following most accurately describes he current state of HRM efforts o staff international operations?
A. more women are accepting international assignments
B. people without family or kids are less successful in international assignments.
C. third-country nationals are quickly being replaced y localized expatriates.
Answer:
Option A is the accurate option.
Explanation:
Employers would be assigned to foreign employment, and therefore more women than ever are being sent overseas.The trend has always been rising throughout the Asia-Pacific region especially Northern America has been seeing substantial growth throughout this phenomenon or development.The other choices aren't related to the given scenario. So the above is the appropriate solution.
Assume that, on January 1, 2021, Matsui Co. paid $2,958,000 for its investment in 87,000 shares of Yankee Inc. Further, assume that Yankee has 290,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $580,000 at January 1, 2021. The following information pertains to Yankee during 2021:
Net income $290,000
Dividends declared and paid $87,000
Market price of common stock on 12/31/2021 $36 /share
Required:
What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee?
Answer: $3,018,900
Explanation:
Amount to report is:
= Cost of investment + Share of Net income - Share of dividends
Share of Net income
= Percentage ownership * Net income
= 87,000 shares / 290,000 * 290,000
= $87,000
Share of Dividends
= 87,000 / 290,000 * 87,000
= $26,100
Amount to report:
= 2,958,000 + 87,000 - 26,100
= $3,018,900
One out of every ten jobs falls into the marketing category.
True
False
Answer:
true
Explanation:
one out of every ten jobs falls into the marketing category
explain the EU's objectives on their economic actions?
Answer:
The objective is to ensure Europe's sustainable and steady development. It means balanced economic growth and stable prices. The European Union seeks to create a competitive market economy which takes into account people's wellbeing and social needs. An
The senior vice presidents at Terra Firma Construction are each responsible for a specific function within the organization. One leads the human resources team, one the marketing team, another the finance team, and so on. Which of the following options for viewing organization charts would best assist you in reporting on the areas of specialization within Terra Firma Construction?
a. reviewing dotted line relationships
b. scanning the chart vertically
c. working from the entry-level positions upwards
d. studying the chart’s matrices
e. examining the chart from side to side
Answer:
b. scanning the chart vertically
Explanation:
Scanning the charts vertically is the best option for assisting when trying to report to the vice president on their various areas of specializations. In vertical organogram, it helps to represent the line or chain of commands in an organization starting from the least to the most important person in that given organization vertically.
The least would happen to be the new entrant in the organization while the most important would happen to be the CEO or President overseeing all the activities of the said organization.
The best option for viewing organization charts would best assist you in reporting on the areas of specialization within Terra Firma Construction is scanning the chart vertically.
Vertical scanning is often known as when a single IP is being tested on multiple ports.
Organizational chart are often classified into two types. they are
Vertical HorizontalIt is often based on the style of the layout. A vertical organizational chart often looks like a pyramid with the CEO or company president at the top.
It often have a single segment having series of middle management and the manager who have their own department.
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Andrew and Brianna are married and live in Texas, a community-property state. For their birthdays this year Andrew gave cash gifts of $20,900 to each of his two daughters, and Brianna gave $35,200 to her niece. What is the amount of Andrew's taxable gifts
Answer: $2,600
Explanation:
Because Andrew is married, the gift tax on him is split in half between him and his wife. This means that to each of his daughters, the gift tax will be on:
= 20,900 / 2
= $10,450
This amount is less than the gift exclusion limit of $15,000 so Andrew will not be charged taxes on the gifts to his daughters.
On the gift to Brianna's niece, Andrew's gift tax will be based on:
= 35,200 / 2
= $17,600
This is above the gift exclusion limit of $15,000 by:
= 17,600 - 15,000
= $2,600
The above would therefore be Andrew's taxable gift amount.
All of the following are criticisms of the payback period criterion EXCEPT Group of answer choices time value of money is not accounted for. it deals with accounting profits as opposed to cash flows. None of the above; they are all criticisms of the payback period criteria. cash flows occurring after the payback are ignored.
Answer:
I dont know
Explanation:
Dman
The controller of Norton Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
Month Total Maintenance Costs Total Machine Hours
January $2,700 300
February $3,000 350
March $3,600 500
April $4,500 690
May $3,200 500
June $5,500 700
1. Determine the variable cost components using the high-low method. (Round variable cost to 3 decimal places e.g. 12.250.)
Variable cost per machine hour $ _
2. Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.)
Total fixed costs $ _
Answer:
Results are below.
Explanation:
Giving the following information:
January $2,700 300
February $3,000 350
March $3,600 500
April $4,500 690
May $3,200 500
June $5,500 700
To calculate the variable and fixed costs, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,500 - 2,700) / (700 - 300)
Variable cost per unit= $7
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 5,500 - (7*700)
Fixed costs= $600
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,700 - (7*300)
Fixed costs= $600
Hamby transfers a capital asset in exchange for a one-half interest in Hartsville LLC. The asset has an adjusted basis to Hamby of $20,000 and a fair market value of $55,000.
Hamby has a $_____________ realized gain on the exchange. Hamby's basis for his LLC interest is $______. The LLC's holding period for the capital asset carries over from Hamby . The LLC’s basis for the contributed property is $____________.
Answer: a. $35000
b. $20000
c. $20000
Explanation:
a. The realized gain will be:
= Fair market value - Adjusted basis
= $55000 - $20000
= $35000
b. The basis for LLC Interest will be will be thesame as the adjusted basis which will be $20000
c. The LLC basis for the contributed property will be $20000 as it's the cost of the adjusted basis .
=
What are the advantages of electronic communication
Answer:
IT HEPLS TO SOLVE ECONOMIC PROBLEMS ABOUT TRADITIONAL SUPERSTATION
Answer:
1. It is cheap
2. Ease of access and long term storage
3. Mobility in information transfer
4. Speedy communication
Explanation:
1. Communication over electronic media is very cheap and economical. Messaging via mobile devices can be done at little or no cost. Very important and urgent information can be disseminated through text or phone calls. This eliminates the cost of transportation.
2. You can save any information you receive or send easily for retrieval in future. The user can choose to store the messages temporarily or permanently. He can decide to print or store in files or hard disks.
3.Electronics communication involves the use of mobile devices such as phones, laptops and tablets for communication. You can carry these devices around easily, hence the portability in information and messaging.It makes it possible for people to stay in touch with their colleagues, friends and family anywhere and anytime.This channel of communication is a very big booster in the productivity of people who work online. They can do their jobs anywhere even when they are on vacation, inside the train, on a bus and anywhere you can think of.
4.Electronic communication is very fast. It offers users the opportunity to message and share information, multimedia messages and other information files within a blink.Instant messaging is very beneficial as people can now get information on the go.The quickness of important information can save lives and properties. Electronic Communication is very useful in security. You can use it as a means to create awareness about danger and people will be on the know within a matter of seconds.
LCI Cable Company grants 2.0 million performance stock options to key executives at January 1, 2018. The options entitle executives to receive 2.0 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $16 per option.
Required:
a. Prepare the appropriate entry when the options are awarded on January 1, 2018.
b. Prepare the appropriate entries on December 31 of each year 2018.
c. Suppose at the beginning of 2019, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2019 and 2020.
Answer:
Data provided as per the question is given below:-
Option expected to vest = 2.4 million
Fair value = $13
No Journal entry is required until the end of the reporting period, but reimbursement must be calculated at the grant date.
Estimated total compensation = Option expected to vest × Fair value
= 2.4 million × $13
= $31.2 million
Explanation:
HELP URGENT PLEASE!!!!!!!!!!!!!
Answer:
Workman's compensation
Explanation:
OSHA stands for Occupational Health and Safety Administration, and it is an agency created during the administration of Richard Nixon, whose main purpose is to establish safety rules in the workplace, to make sure that workers are aware of those rule, and to compensate workers economically in case their health is affected by a violation of a regulation from the companies they are or were working for.
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for ?
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed ?
Units accounted for ?
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Required:
1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.
Fordman Company
Schedule of Equivalent Units
For the month of December
Direct Materials Conversion Costs Transferred In
Units completed
Ending WIP:
x
%
x
%
Total equivalent units
2. Compute the unit cost for the month. If required, round your answer to the nearest cent.
$ per equivalent unit
Answer:
Fordman Company
1. Fordman Company
Schedule of Equivalent Units
For the month of December
Direct Materials Conversion Costs Transferred In
Units completed 16,000 16,000 20,000
Ending WIP: 4,000 4,000
(8,000 * 50%) (8,000 * 50%)
Total equivalent units 20,000 20,000 20,000
2. Cost per equivalent unit:
Direct Materials Conversion Costs Transferred In
Total costs of production $37,000 $56,000 $48,000
Total equivalent units 20,000 20,000 20,000
Cost per equivalent unit $1.85 $2.80 $2.40
Explanation:
a) Data and Calculations:
Transferred in units = 20,000
Cost of units transferred in = $40,000
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started 20,000
Total units to account for 24,000
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed 16,000
Units accounted for 24,000
Materials Conversion Transferred in
Beginning work in process $5,000 $6,000 $8,000
Costs added during month 32,000 50,000 40,000
Total costs of production $37,000 $56,000 $48,000
A 10-year, 10.00%, $5,000 bond that pays dividends quarterly can be purchased for $4,610.
This means that $4,610 is spent on the bond now. Every quarter, $125.00 is provided to the purchaser as the dividend. After 10 years, $5,000 is given to the purchaser.
If the bond is purchased and pays as scheduled, which of the following ranges of effective rate of return will the purchaser receive?
a. 11.00% - 12.00%
b. 10.00% - 10.50%
c. 12.01% - 14.01%
d. 10.50% - 10.75%
Answer: a. 11.00% - 12.00%
Explanation:
We can find the rate using Excel.
Payments are quarterly so we need to adjust the variables to quarterly figures:
Period = 10 years * 4 = 40 quarters
Present value = $4,610 (should be a negative number)
Future value = $5,000 at maturity
The effective rate will be 2.9% as shown in the attachment.
This is a quarterly figure so convert it to annual:
= 2.9 * 4
= 11.6%
It is between 11% and 12%
What is the answer i been trying this whole time.If you get it i'll give you 30 point honestly......
Answer:
GBGGPGGGGRGGGGGPGGGWG
Explanation:
Green trees = G
Blue trees = B
Pink trees = P
Red trees = R
Purple trees = P
White trees = W
Brief Exercise 22-07 Sunland Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $26,020 in the first quarter, and $5,140 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $41,120 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2020.
Answer:
So whats the question???
Explanation:
What conditions must be added to Pure Competition to achieve Perfect Competition?
XYZ Insurance Company uses class rating to determine the rate to charge for insurance.
For one type of insurance the pure premium XYZ actuaries calculated is $75 per unit.
If XYZ's expense ratio is 30%, what is the gross rate for this coverage?
O a. $107.14
O b. $96.28
O C. $85.19
O d. $115.62
Answer: a. $107.14
Explanation:
The gross rate for insurance coverage represents the amount that the insurance provider needs to pay for losses as well as the amount needed to pay for expenses such as sales expenses and still be able to have a profit.
Given the expense ratio and the pure premium is:
= Premium / ( 100 - expense ratio)
= 75 / (100 - 30%)
= $107.14
please help me out with this problem
Answer: organizing
Explanation:
Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1. with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred:
Apr. 1 Issued 80,000 shares of common stock at 540 cash per share:
3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at 3 531,000
8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000
20 Issued 6,000 shares of preferred stock for cash at $80 per share.
Required :
a. Prepare journal entries to record the above transactions.
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Answer:
a. See the journal entries below.
b. Stockholders' equity = $3,766,000
Explanation:
Note: There are little errors in this question where dollar signs are used as figures. These are however corrected before answering the question. The complete question with the correction is therefore presented as follows:
Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1. with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred:
Apr. 1 Issued 80,000 shares of common stock at $40 cash per share:
3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000
8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000
20 Issued 6,000 shares of preferred stock for cash at $80 per share.
Required :
a. Prepare journal entries to record the above transactions.
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Explanation of the answers is now given as follows:
a. Prepare journal entries to record the above transactions.
Let APIC represents additional paid in capital, the journal entries can be prepared as follows:
Date Particulars Dr ($) Cr ($)
Apr. 1 Cash (80,000 * $40) 3,200,000
Common stock (80,000 * $5) 400,000
APIC - Common stock 2,800,000
(To record common stock issued in excess of par value.)
Apr. 3 Attorney and promoters service exp. 31,000
Common stock (2,000 * $5) 10,000
APIC - Common stock 21,000
(To record common stock issued to attorneys and promoters for services at a premium.)
Apr. 8 Equipment (Fair value) 55,000
Common stock (3,000 * 5) 15,000
APIC - Common stock 40,000
(To record common stock issued for equipment at a premium.)
Apr. 20 Cash (6,000 * $80) 480,000
Preferred stock (6,000 * $50) 300,000
APIC - Preferred stock 180,000
(To record preferred stock issued in excess of par value.)
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Using the figures from the journal entries above, this can be prepared as follows:
Torey Corporation
Stockholders' Equity Section of the Balance Sheet
At April 30.
Details Amount ($)
Common stock ($400,000 + $10,000 + $15,000) 425,000
Preferred stock 300,000
APIC - Common stock ($2,800,000 + $21,000 + $40,000) 2,861,000
Additional paid in capital - Preferred stock 180,000
Stockholders' equity 3,766,000
a. Prepare journal entries to record the above transactions.
Date Particulars Dr ($) Cr ($)
Apr. 1 Cash (80,000 * $40) 3,200,000
Common stock (80,000 * $5) 400,000
APIC - Common stock 2,800,000
(To record common stock issued in excess of par value.)
Apr. 3 Attorney and promoters service exp. 31,000
Common stock (2,000 * $5) 10,000
APIC - Common stock 21,000
(To record common stock issued to attorneys and promoters for services at a premium.)
Apr. 8 Equipment (Fair value) 55,000
Common stock (3,000 * 5) 15,000
APIC - Common stock 40,000
(To record common stock issued for equipment at a premium.)
Apr. 20 Cash (6,000 * $80) 480,000
Preferred stock (6,000 * $50) 300,000
APIC - Preferred stock 180,000
(To record preferred stock issued in excess of par value.)
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Torey Corporation
Stockholders' Equity Section of the Balance Sheet on April 30
Details Amount ($)
Common stock ($400,000 + $10,000 + $15,000) 425,000
Preferred stock 300,000
APIC - Common stock ($2,800,000 + $21,000 + $40,000) 2,861,000
Additional paid in capital - Preferred stock 180,000
Stockholders' equity 3,766,000
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