Answer:
$129.35
Explanation:
Here is the full question :
What is the present value of an annuity of $27 received at the beginning of each year for the next six years? The first payment will be received today, and the discount rate is 10%
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 5 = $27
I = 10%
PV = $129.35
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
You are thinking about investing in a mine that will produce $10,000 worth of ore in the first year. As the ore closest to the surface is removed it will become more difficult to extract the ore. Therefore, the value of the ore that you mine will decline at a rate of 7% per year forever. If the appropriate interest rate is 3%, then the value of this mining operation is closest to
Answer:
$100,000
Explanation:
Cash flow = $10,000
Interest rate = 3%
Growth = -7%
Value of this mining operation = Cash / (Rate - Growth)
Value of this mining operation = $10,000 / (3% -(-7%)
Value of this mining operation = $10,000 / 10%
Value of this mining operation = $10,000 / 0.10
Value of this mining operation = $100,000
On January 1 of the current year, Lean Co. made an investment of $10,000. The following is the present value of $1.00 discounted at a 10% interest rate: Present value of $1.00 Periods Discounted at 10% 1 .909 2 .826 3 .751 What amount of cash will Lean accumulate in two years?
Answer:
$12,107
Explanation:
Calculation for What amount of cash will Lean accumulate in two years
Using this formula
Future amount=Present value ÷ Present value factor
Let plug in the formula
Future amount = $10,000 / .826
Future amount= $12,107
Therefore the amount of cash that Lean will accumulate in two years will be $12,107
A strategy in which a U.S, based company maintains production facilities in the U.S. and ships products
to Canada for sale to consumers, best describes
Answer: Export manufacturing.
Explanation:
As you included no options, I can only give a general answer.
The scenario described above is export manufacturing. Export manufacturing is a strategy where a company produces goods solely for the purpose of exporting them to another country for sale.
This is what is happening in the scenario above. The U.S. based company is producing goods in the United States then sending them to Canada to be sold thereby engaging in export manufacturing.
Smith Services, Inc., was a trucking company established in 2015 and owned by Tony Smith as the sole shareholder. Tony Smith also was the president of the company. Tony Smith set up an account with Laker Express, a fuel provider, on behalf of Smith Services, Inc., and his drivers often would charge fuel purchases for the company trucks to that account. Laker Express then would bill Smith Services regularly for the charges on the account. After several months of low business, Smith Services ceased doing business and was dissolved in 2018, with its assets being distributed to creditors. Laker Express only recovered a small part of the amount owed by Smith Services, Inc. Tony Smith then opened up a new trucking service business as a sole proprietor. Laker Express sought to recover Smith Services' unpaid fuel charges, which amounted to about $35,000, from Smith. Smith argued that he was not personally liable for a corporate debt. Should a court hold Tony Smith personally liable
Answer:
No he should not be held personally liable by a court
Explanation:
A court should not hold him personally liable Because Smith services incorporated was a corporation. Such a business is a separate entity from the people who own it. Since the business smith services was the one that set set up account with Lakers Express, it should be liable for all changes in the account not Tony. This is as Tony did not mix up business activities with personal activities so this court can not rule against limited liability. In the case of these fuel charges, he is not to be held accountable. The employees are.
There are no evidences that formalities were not followed by Tony for the court to hold him liable.
Angel Corporation reported pretax book income of $1,018,000. During the current year, the net reserve for warranties increased by $27,700. In addition, tax depreciation exceeded book depreciation by $104,500. Finally, Angel subtracted a dividends received deduction of $28,600 in computing its current year taxable income. Angel's hypothetical tax express in its reconciliation of its income tax expense is:
Answer:
$346,120
Explanation:
Calculation for what Angel's hypothetical tax expense in its reconciliation of its income tax expense is
Using this formula
Tax expense =Pretax book income*Tax rate
Let plug in the formula
Tax expense =$1,018,000*34%
Tax expense =$346,120
Therefore Angel's hypothetical tax expense in its reconciliation of its income tax expense is $346,120
Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs:
Job B18: Direct materials ($12,000) Direct labor ($8,000)
Job B19: Direct materials ($25,000) Direct labor: ($10,000)
Job C11: Direct materials ($18,000) Direct labor: ($5,000)
Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19.
What is Kapanga's work in process inventory balance at the end of October?
A) $23,000
B) $30,500
C) $32,000
D) $43,000
Answer:
B) $30,500
Explanation:
Calculation for Kapanga's work in process inventory balance at the end of October
First step is to calculate the Variable Overheads
Variable Overheads = 150% × $5,000
Variable Overheads = $75,000
Now let calculate work in process inventory balance using this formula
Work in process inventory balance = Direct Material + Direct Labor + Variable Overheads
Let plug in the formula
Work in process inventory balance= $ 18,000 + $ 5,000 + $ 7,500 = $ 30,5000
Work in process inventory balance= $30,500
Therefore Kapanga's work in process inventory balance at the end of October will be $30,500
Diana Corporation provides the following information for 2017 Calculate a. cost of goods manufactured in 2017 and b. cost of goods sold in 2017 Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer-service costs are variable with respect to units sold. Production in 2017 was 100,000 units. Two pounds of direct materials are used to make one unit of finished product. Revenues in 2017 were $473,200. The selling price per unit and the purchase price per pound of direct materials were stable throughout the year. The company's ending inventory of finished goods is carried at the average unit manufacturing cost for 2017. Finished- goods inventory at December 31, 2017, was $20,970. Required 1. Calculate direct materials inventory, total cost, December 31, 2017. 2. Calculate finished-goods inventory, total units, December 31, 2017. 3. Calculate selling price in 2017. 4. Calculate operating income for 2017.
Question Completion:
Diana Corporation provides the following information for 2017: 2-3 Beginning work-in-process inventory, 1/1/2017 Total manufacturing costs incurred in 2017 Ending work-in-process inventory, 12/31/2017 Beginning inventory of finished goods, 1/1/2017 Ending inventory of finished goods, 12/31/2017 $ 9,000 $160,000 $ 8,000 $ 15,000 $ 21,000 -) 195.000
Answer:
Diana Corporation
Aa. Cost of Goods Manufactured in 2017 is:
= $161,000
Ab. Cost of Goods Sold in 2017 is:
= $155,000
B1. Direct materials inventory, total cost, December 31, 2017:
= $ 8,000
B2. Finished Goods Inventory, total units, December 31, 2017:
= 13,125 units
B3. Selling Price in 2017 is:
= $4.92
B4. Operating Income for 2017:
Revenue $473,200
Cost of goods sold 155,000
Gross profit $318,200
Marketing, distribution,
and customer-service
Expenses 195,000
Operating Income $123,200
Explanation:
a) Data and Calculations:
Beginning work-in-process inventory, 1/1/2017 = $ 9,000
Total manufacturing costs incurred in 2017 = $160,000
Ending work-in-process inventory, 12/31/2017 = $ 8,000
Beginning inventory of finished goods, 1/1/2017 = $ 15,000
Ending inventory of finished goods, 12/31/2017 = $ 21,000
Production in 2017 = 100,000 units
Direct materials = 2 pounds for 1 unit of finished product.
Revenue in 2017 = $473,200
Ending inventory of finished goods = average cost.
Finished goods inventory at December 31, 2017 = $20,970
Selling and Distribution expenses = $195,000
Cost of goods manufacturing in 2017:
Beginning work-in-process inventory, 1/1/2017 = $ 9,000
Total manufacturing costs incurred in 2017 = $160,000
Ending work-in-process inventory, 12/31/2017 = ($ 8,000)
Cost of goods manufactured in 2017 = $161,000
Cost of goods sold in 2017:
Beginning inventory of finished goods, 1/1/2017 = $ 15,000
Cost of goods manufactured in 2017 = $161,000
Ending inventory of finished goods, 12/31/2017 = $ 21,000
Cost of goods sold in 2017 = $155,000
Production in 2017 = 100,000 units
Direct materials cost per unit = $161,000/100,000 = $1.61
Total units of finished goods inventory
Beginning inventory of finished goods, 1/1/2017 = $ 15,000
Cost of goods manufactured in 2017 = $161,000
Total cost of goods available for sale = $176,000
Units = $176,000/$1.61 = 109,317 units
Ending units of finished goods inventory = $21,000/$1.61 = 13,125 units
Selling price in 2017:
Cost of goods sold = $155,000
Unit cost = $1.61
Units sold = $155,000/$1.61
= 96,273 units
Selling price = Revenue/Units sold = $473,200/96,273 = $4.92
Operating income for 2017
On July 1, Shady Creek Resort borrowed $310,000 cash by signing a 10-year, 11% installment note requiring equal payments each June 30 of $52,639. What amount of interest expense will be included in the first annual payment
Answer:
$34,100
Explanation:
The interest on the installment note for the first year is a function of both the face value of the note and interest rate of 11%
Interest expense on the first annual payment=$310,000*11%
Interest expense on the first annual payment=$34,100
The amount principal repayment in respect of the first annual payment is the amount of payment which is $52,639 minus the interest portion of the payment.
The Principal portion of the first payment=$52,639-$34,100=$18,539
Business partners Arnetta and Xavier are designing their new office space and furnishings. They want to communicate success and impress visiting clients, so they choose high-quality hardwood flooring and elegant furniture. Which aspect of nonverbal communication does this illustrate
Answer:
environment.
Explanation:
Analyzing the information in the question, it is correct to say that Arnetta and Xavier are using the aspect of non-verbal communication related to the environment, due to the fact that their goal is to communicate success and impress visiting customers through high quality wooden floors. and elegant furniture, that is, they use physical and psychological aspects combined with the office environment that communicate success.
Environmental non-verbal communication allows to impress people through the design of their environment, and brings significant advantages to companies that use this strategy effectively, as it reinforces the desired communication and creates the expected strategic effect.
Environmental elements that are both fixed and semi-fixed
Gathering the data in the question, it is true to say that Arnetta and Xavier are employing nonverbal signals connected to the environment, as their purpose is to communicate accomplishment and impress prospective customers through high-quality hardwood surfaces.
Environmental communication process allows firms to impress people by the design of their surroundings, and it has enormous benefits for companies who employ it successfully, since it reinforces the intended communication and achieves the desired strategic result.
Learn more:https://brainly.com/question/21063809?referrer=searchResults
prepare a three column cash book from de following information
1 January 2012 balance brought forward from last year
cash 1000
bank 2500
5January cash banked 800
7 January cash sales 1200
10 January cash sales banked 700
15 January paid salaries by cheque 900
21 January cash withdrawn from bank 5300
25 January paid creditors less 10% discount 2050
27 January cash sales less 10% discount 6100
28 January customers paid their account less 10% discount 2400
29 January cash purchases 900
30 January additional capital introduced 1000
31 January cash drawings 480
Ching Lee was transferred by his Asian firm to assume a managerial position in a large automobile production plant in the United States. In his first report to his supervisor, he expressed concern that U.S. workers were not giving him the proper respect. What behaviors by U.S. workers could have led Ching Lee to draw this conclusion
Answer:
cultural differences, stereotypes, and prejudice
Explanation:
There are many behaviors that could have led Ching Lee to draw this conclusion, they include cultural differences, stereotypes, and prejudice. This can include making jokes, treating people a certain way that may be common in the US, or even making comments about Ching Lee's ethnicity and/or culture. All of these behaviors could easily make Ching Lee believe that the US workers are making fun of him and not showing him the respect that he deserves as a manager.
A managerial position is one in which a person is primarily responsible for the management and direction of other employees. Managers may also be in charge of a certain function within a corporation.
One of the ways to demonstrate respect for senior employees or persons in positions of power is through communication.
In reciprocal relationships, bad communication can lead to misunderstandings, which can lead to disrespect.
Communication is a factor in Ching Lee's experience in the United States. Because of cultural and moral differences, there may be considerable communication gaps between Asian and American business contexts.
In comparison to communities in the United States, Asian communities are more patriarchal.
Workplace equality is a prominent topic in the United States, and great progress has been made in this area.
As a result, employees have unrestricted access to their bosses and it's reasonable to suppose that Lee interpreted the differences as disrespect and conveyed his displeasure to his boss.
For more information regarding the managerial position, refer to the link:
https://brainly.com/question/22867669
You are choosing the color scheme for a Web page. Which color is considered the color of extremes and is used to capture attention, and to indicate danger and anger?
A: green
B: red
C: yellow
D: purple
please answer this im trying to finish a test <3
What is
brand personification example with food industry
Answer:
Projective Technique that asks people to think about brands as if they were people and to describe how the brands would think and feel," according to mktresearch.org.18 May 2016
Projective Technique that asks people to think about brands as if they were people and to describe how the brands would think and feel," according to mktresearch.org.18 May 2016
Explanation:
Projective Technique that asks people to think about brands as if they were people and to describe how the brands would think and feel," according to mktresearch.org.18 May 2016
On January 1, 2019, Everlasting, Inc. purchased Comet Corporation for $650,000. On that date the net assets of Comet had a book value of $320,000, and book values were equal to fair values with the following exceptions:
FIFO Inventory --Undervalued, $30,000
Land--Undervalued, $10,000
Equipment (5 year life)--Undervalued, $75,000
Patent (5-year life)--Undervalued, $25,000
During 2019, Everlasting had income from its own operations of $220,000 and Comet had net income of $80,000.
38. What amount of 2019 Equity Income was recognized by Everlasting?
______
39. What is 2019 consolidated net income?
______
40. What amount of goodwill appeared on the consolidated balance sheet at December 31, 2019?
______
Answer:
A. $30,000
B. $250,000
C. $190,000
Explanation:
A. Calculation for What amount of 2019 Equity Income was recognized by Everlasting
Based on the information given the amount of 2019 Equity Income that was recognized by Everlasting will be $30,000 which is FIFO Inventory Undervalued amount.
B. Calculation for 2019 consolidated net income
Everlasting had income from its own operations of $220,000
Add FIFO Inventory --Undervalued, $30,000
Consolidated net income $250,000
C. Calculation for What amount of goodwill appeared on the consolidated balance sheet at December 31, 2019
Cost of Acquisition $650,000
Less: Book value $320,000
FIFO Inventory --Undervalued, $30,000
Land--Undervalued, $10,000
Equipment , $75,000
Patent, $25,000
Goodwill $190,000
Bank “A” is offering 2% interest and a $100 debit card on a newly opened savings account with a minimum balance of 1,000$ for one year. Bank “B” is offering 5% interest and a $50 debit card on a newly opened a savings account with a minimum balance of $1000 a year. assuming you deposit $1000 which one has the better return (interest plus card value) FOR THE FIRST MONTH?
Answer:
Bank A
Explanation:
5% of 1000 is $50. So they are giving you $50 in interest and $50 on the debit card. Whereas, the other one, 2% of 1000 is $20 in interest and they are giving you $100 debit card. That means you get $100 from Bank B, but you get $120 from Bank A.
Utility bills change each monthly, so these are called _____ expenses.
a. Fixed
b. Variable
c. Periodic
d. None of these are correct
Answer:
the answer is c peroidic
Has anyone done this
Please help
Answer:
Explanation:
you have to do t with someone to understand it
Sally is a channel manager for the Carolina Bee Company, which offers bee pollination services to orchard growers and farmers. The company acquired a smaller bee business and is integrating it into the company’s current distribution channel process. Which areas of the distribution flow are critical for Sally to address with this new business integration?
A. service, negotiation, information, promotion, and profit.
B. product, negotiation, ownership, information, and promotion.
C. product, ownership, information, cash and redundancy.
Answer:
B
Explanation:
B. product, negotiation, ownership, information, and promotion.
What are mutual funds? Explain the associated risks.
Answer:
A mutual fund is an investment program funded by shareholders that trades in diversified holdings and is professionally managed.
Risks:
The level of risk in a mutual fund depends on what it invests in. Stocks are generally riskier than bonds, so an equity fund tends to be riskier than a fixed income fund. Plus some specialty mutual funds focus on certain kinds of investments, such as emerging markets, to try to earn a higher return. These kinds of funds also tend to have a greater risk of a larger drop in value—yet the greater the risk, the greater the reward (or potential for higher returns).
Risks of Investing in Equity Mutual Funds The below are a few key risks involved with investing in equity funds: Volatility Risk: An equity fund invests primarily in the shares of companies listed on stock exchanges. Thus, the value of an equity fund is directly related to the performance of companies, in stocks of which it has invested.
g Miller Brooks is planning to purchase a new mobile phone plan. However, she is not sure about which plan to select. The regular plan charges a fixed amount of $55 per month for 1,000 minutes plus $0.33 per minute over 1,000 minutes. The platinum plan charges a fixed amount of $100 per month. for 1,200 minutes plus $0.25 per minute over 1,200 minutes. Answer the following questions: (2 points each) 1) Miller is expecting to use her phone for 21 hours per month. Which plan should she select
Answer:
The platinum plan should be selected.
Explanation:
This can be determined using the following 4 steps:
Step 1: Calculation of the total expected minutes in a month
Total number of expected minutes in a month = Number of hours Miller is expected to use her phone per month * Numbe of minutes in one hour = 21 hour * 60 minutes = 1,260 minute
Step 2: Calculation of the expected cost of regular plan
Expected fixed cost of 1,000 minutes per months = $55
Expected cost of minutes over 1,000 minutes = (Total number of expected minutes in a month - 1,000 minutes) * Cost per minute = (1,260 - 1,000) * $0.33 = 260 * $0.33 = $85.80
Expected cost of regular plan = Expected fixed cost of 1,000 minutes per months + Expected cost of minutes over 1,000 minutes = $55 + $85.80 = $140.80
Step 3: Calculation of the expected cost of platinum plan
Expected fixed cost of 1,200 minutes per months = $100
Expected cost of minutes over 1,200 minutes = (Total number of expected minutes in a month - 1,200 minutes) * Cost per minute = (1,260 - 1,200) * $0.25 = 60 * $0.25 = $15
Expected cost of platinum plan = Expected fixed cost of 1,200 minutes per months + Expected cost of minutes over 1,200 minutes = $100 + $15 = $115
Step 4: Decision
Expected cost of regular plan = $140.80
Expected cost of platinum plan = $115
Since the expected cost of platinum plan of $115 is lower than the expected cost of regular plan of $140.80, the platinum plan should be selected.
"Sorry to put you through that test. We're more like a team of investors than operational partners even Seth and Jia, who started the restaurant 30 years ago. So we need to be sure you'll run the restaurant ethically. Everybody did love Julio, but he was a mess. We'd never hire him back. We'd like to hire you, but on a probationary basis for three months. What do you need to get started
Explanation:
Analyzing all the information related to the question above, a good strategy for an effective start would be to adopt good work practices such as organization and ethics, which were information provided by investors about what they expect from the new manager. That is why it is necessary to establish an effective and positive communication with employees and customers of the restaurant, be an ethical professional who meets the requirements and policies proposed by the company, etc.
A good strategy also to start in the internship regime and make a good impression for investors would be to talk with the establishment's prominent employees about the best practices to be adopted in the restaurant to be successful.
Selected accounts with a credit amount omitted are as follows
Work in Process
Apr. 1 Balance 6,100 Apr. 30 Goods finished X
30 Direct materials 61,100
30 Direct labor 191,300
30 Factory overhead 57,390
Finished Goods
Apr. 1 Balance 14,200
30 Goods finished 306,600
What was the balance of Work in Process as of April 30?
a.$57,390
b.$9,290
c.$306,600
d.$14,200
Answer:
b.$9,290
Explanation:
Calculation for What was the balance of Work in Process as of April 30
WORK IN PROCESS=[(61,100+191,300+57,390)-306,600]+6,100
WORK IN PROCESS=(309,790-306,600)+6,100
WORK IN PROCESS=3,160+6,100
WORK IN PROCESS=$9,290
Therefore the balance of Work in Process as of April 30 will be $9,290
plzz help i need help
Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $2.7 million to build and $175,000 per year to maintain. Design 1B will cost $3.8 million to build and $40,000 per year to maintain. Both designs are assumed to be permanent. Use an AW-based rate of return equation to determine (a) the breakeven ROR and (b) which design is preferred at an MARR of 10% per year. a) The breakeven ROR is %. b) At an MARR of 10% per year, design 1B Correctis preferred.
Answer:
The answer is below
Explanation:
a)
The present cost of design 1A = 2700000 + 175000/r
The present cost of design 1B = 3800000 + 40000/r
Where r is the rate of return.
At breakeven rate of return, the present cost of both designs would be the same. Hence:
2700000 + 175000/r = 3800000 + 40000/r
3800000 - 2700000 = 175000/r - 40000/r
1100000 = 135000/r
r = 135000 / 1100000 = 0.1227
r = 12.27%
Therefore the breakeven rate of return is 12.27%
b) At an MARR of 10% per year, that is r = 0.1:
The present cost of design 1A = 2700000 + 175000/0.1 = $4.45 million
The present cost of design 1B = 3800000 + 40000/0.1 = $4.2 million
At an MARR of 10% per year, design 1B Correct is preferred because it has the lowest cost.
what is brand personality with example in food industry
Explanation:
The brand personality can be understood as a set of adjectives and feelings that a brand is able to cause in the consumer through its positioning in the market. For example, a brand can be youthful, happy, family, environmentally responsible, etc.
Building the brand personality is a task achieved through the communication of the brand with its stakeholders, each internal and external process is responsible for this construction, such as the language used in marketing communications, images, phrases, slogan, colors and many other characteristics . It is essential that the personality of the brand is aligned with its potential audience, thus the value, satisfaction and reliability of the customer is achieved, generating greater positioning for the brand in the market.
In the food industry, we can mention Coke as an example of a brand whose family values, always using commercial messages linked to diversity, joy, togetherness, celebration, etc.
What is critical thinking?
Answer:
Critical thinking is the analysis of facts to form a judgment. The subject is complex, and several different definitions exist, which generally include the rational, skeptical, unbiased analysis, or evaluation of factual evidence.
Explanation:
i just know
If merchandise costing $500 is sold on account for $620, how is this transaction recorded when using a perpetual inventory system
Answer:
Explanation:
Debit Accounts Receivable and credit Sales Revenue for $620;
DEBIT: Cost of Goods Sold CREDIT: Inventory for $500
You have just entered an MPP program and have decided to pay for your living expenses using a credit card that has no minimum monthly payment so you will not be making any payment while you pursue your education. You intend to charge $1500 per month on the card for the next 21 months. The card carries a monthly interest rate of 1%. How much money will you owe on the card 22 months from now, when you receive your first statement post-graduation
Answer:
$35,207.37
Explanation:
Future value = Monthly payment * [ [(1 + r)^n – 1 ] / r ] * (1 + r)
Future value = $1500 * [ [(1 +0.01)^21 - 1] / 0.01 ] * 1 + 0.01
Future value = $1500 * [[1.01^21 - 1] / 0.01] * 1.01
Future value = $1500 * [[1.23239194035 - 1] / 0.01] * 1.01
Future value = $1500 * [0.23239194035/0.01] * 1.01
Future value = $1500 * 23.23919 * 1.01
Future value = $35207.37285
Future value = $35,207.37
Peterson Manufacturing recently reported EBITDA of $18.75 million and $4.5 million of net income. It has $5 million of interest expense and its corporate tax rate is 40%. What was its depreciation and amortization expense (in millions of dollars)
Answer:
Peterson Manufacturing
Its depreciation and amortization expense (in millions of dollars) was:
= $6.25 million
Explanation:
a) Data and Calculations:
EBITDA = $18.75 million
Depreciation and amortization expense = $6.25 million
Earnings before Interest = $12.50 million
Interest expense = $5.00 million
Earnings before taxes = $7.50 million
Corporate taxes (40%) = $3.00 million
Net Income = $4.50 million
Earnings before taxes = Net income/1-tax rate
= $4.5 million/60% = $7.5 million
Corporate taxes = 40% of $7.5 million = $3.0 million
Earnings before interest = Interest expense plus earnings before taxes (earnings after interest)
= $5 million + $7.5 million = $12.5 million
Therefore, Depreciation and amortization expense = EBITDA - Earnings before Interest
= $18.75 million - $12.5 million
= $6.25 million
b) EBITDA = Earnings before Interest, Taxes, and Depreciation and Amortization.
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $25 on June 13.
Prepare the journal entry to record the stock split if it is not to be effected in the form of a stock dividend. (If no entry is required for a particular event, select "No journal entry required" in the first account field.)
What is the par per share after the split? (Round your answer to 2 decimal places.)
Answer and Explanation:
The journal entry is given below:
Stock dividends Dr $60.00
To Common stock $60.00
(Being the issue of stock dividend is recorded)
Here the stock dividend is debited as it reduced the stockholder equity and credited the common stock as it increased the stockholder equity
Also the par per share after the split is $1