ICOT Industries issued 15 million of its $1 par common shares for $424 million on April 11, 2012. Legal, promotional, and accounting services necessary to effect the sale cost $2 million.
Required: Show the journal entry to record the issuance. How does this treatment compare to debt issue costs we talked about in chapter 14?

Answers

Answer 1

Answer:

Date     Account title and Explanation             Debit               Credit

Apr 11   Cash ($424 million - $2 million)     $422,000,000

                    Common stock                                                     $15,000,000

                     Paid in capital in excess of par value                $407,000,000

                      ($422,000,000 - $15,000,000)

              (To record the issue of common Stock)


Related Questions

What is the mental and physical effort made by humans for the production of goods and services?

Labor

Capital

Land

Entrepreneurship

Answers

Answer:-
I think it’s LABOUR if I guessed it ryt

Cash flows is the most relevant variable to measure the returns on debt instruments, while GAAP net income is the most relevant variable to measure the returns on common stock.
a) true
b) false

Answers

Answer:

b) false

Explanation:

Cash flow determines the cash position of the company whether the company is able to pay the obligations or not. It could be determined by analyzing the inflows of cash and outflows of cash

While on the other hand GAAP is the accounting principle that is compuslory for each and every organization to follow it

Therefore the given statement is false

QUESTION 10 of 10: Your business owns an old truck. Liability insurance is required; collision is optional. Collision insurance costs $500 per year. The old truck has a value of $750. You think the likelihood of having a serious collision in a year is about 10%. Should you get the collision insurance? O a) Yes Ob) No​

Answers

the answer for this question is No

hope this helps

Answer:

no

Explanation:

I had this one.

Marginal Cost of Producing Pies
$1,60
$1.40
$1.20
Marginal Cost
$1.00
$0.80
$0.60
SO 40
S020
S0.00
O Pies
1 Pies
5 Pies
6 Pies
2 Pies 3 Pies 4 Pies
Quantity Supplied
According to the graph, the marginal cost begins to increase when the producer makes
O two pies
O three pies
O four pies
O five pies
Save and Exit
Next
Mark this and return
Su

Answers

Answer:

O four pies

Explanation:

Marginal cost is the expenses associated with the production of an extra item. It the cost attached specifically to the production of one more unit.

From the graph, the marginal rise sharply from 0 units to 1 rapidly. Usually, the marginal cost of the 1st unit is equal to its cost price. The second item's marginal cost is the difference between the cost price of the second item and the first item.

From the graph, the marginal cost starts to rise after the fourth item.  The marginal cost of the fourth item is the difference between the fourth and third item.

Answer: C) FOUR PIES

Some students and scholars may owe money with their tax return. Nonresidents have which of the following payment options?

a. Ask for an extension of time to pay or an installment agreement.
b. Pay the entire balance by the due date for the return.
c. Put the balance on a credit card.
d. All of the above.

Answers

Answer:

d. All of the above.

Explanation:

In the case where certain students and academics owes their tax return money, the non-resident has the below payment options.

a. Either apply for a pay time extension or an agreement to pay on the basis of payments

b. Pay at the due date of the return the total sum

c. On the credit card, put the balance

Therefore by all of the above options they can be eligible

hence, the correct option is d.

Wages have risen in Europe since the 1970s and workers work substantially less than they did 40 years ago. Does this suggest that income effects or substitution effects dominate?

a. Income effect
b. Substitution effect

Answers

Answer:

The correct answer is A. Income effect .

Explanation:

In consumer theory, the income effect is the change in consumption that is due to a change in the consumer's real income, that is, his or her purchasing power. Thus, the fact that wages have increased notably, while working time has been reduced during the same period of time, is a clear sign that the working hour of each man within the productive circuit has today in day a purchasing power much higher than what it had in the past.

Comment with your agreement or disagreement (and why) on the following quote; include in your answer a discussion of what the CEO’s role should be in setting ethical standards and in enforcing ethical behavior: ""Value statements serve as a cornerstone for culture building; a code of ethics serves as a cornerstone for developing a corporate conscience.""

Answers

Answer:

agreed

Explanation:

In simple words, the modern business environment is such that an unethical firm will not survive for long in the market. Thus, it is mandatory for firms to be ethical in every way. A CEO of a company represents the company and can considerations the face of the entity, thus, his or her authority obliges him or her to act and make others act in an ethical manner.

The value statements and code of ethics should be considered as must for the operative activities as it serves as a code of conduct for followers.

For each of the following transactions, identify it as a financial capital inflow or financial capital outflow in the United States Balance of Payments. Also, determine if the transaction is in the Current or Financial Account.

a. The U.S. exports cars to be sold in Canada.
b. Pepsi buys a factory in Mexico.
c. A Brazilian company buys an apartment building in Boston.
d. The central bank of China purchases a U.S. Treasury Bond.
f. A businessman is paid dividends on the stock from a foreign corporation that he owns.

Answers

Answer: See explanation

Explanation:

The balance of payment show tge transactions that occur between a country and another country.

a. The U.S. exports cars to be sold in Canada.

This is a financial capital inflow and the transaction is in the current account.

b. Pepsi buys a factory in Mexico.

This is a financial capital outflow and the transaction is in the financial account.

c. A Brazilian company buys an apartment building in Boston.

This is a financial capital inflow and the transaction is in the current account.

d. The central bank of China purchases a U.S. Treasury Bond.

This is a financial capital inflow and the transaction is in the financial account.

e. A businessman is paid dividends on the stock from a foreign corporation that he owns.

This is a financial capital inflow and the transaction is in the financial account.

Which of the following statements accurately describe the phases of a business cycle?
A. A contraction phase is when an economy exhibits decreasing levels of production and consumption.
B. A period of expansion is when an economy exhibits decreasing levels of production and spending.
C. A trough occurs at the end of the contraction phase and the beginning of the expansion phase
D. A peak level of business activity occurs at the end of the expansion phase and the beginning of the contraction phase.

Answers

Answer:

Option A

Explanation:

In simple words,  contraction relates to a period of the market cycle throughout which the market is in recession as a group When the economic cycle rises, a recession usually occurs, just before it reaches a trough. A contraction is triggered by three kinds of occurrences. We are talking of a sharp spike in borrowing rates a banking crash, or uncontrolled inflation . Paranoia and anxiety replace assurance.

13.) An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 6% yields, what yield must municipals offer for the investor to prefer them to corporate bonds

Answers

Answer:

the yield that must offer for the investor in order to prefer them is 4.2%

Explanation:

The computation is shown below:

The after tax yield is

= Corporate bond yield × (1 - tax rate)

= 6% × (1 - 0.30)

= 6% × 0.70

= 4.2%

hence, the yield that must offer for the investor in order to prefer them is 4.2%

The same is relevant

Which option identifies the concept represented in the following scenario? Winn-Dixie has acquired the nine Gooding's grocery stores in Florida.
- vertical consolidation
- horizontal consolidation
- oligopolistic consolidation
- monopolistic consolidation​

Answers

Answer:

oligopolistic consolidation

Answer:

maybe vertical

Explanation:

In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.
Select one:
a. fiscal; monetary
b. monetary, monetary
c. monetary, fiscal
d. fiscal; fiscal

= fiscal; monetary​

Answers

With an expansionary fiscal policy, the interest rate rises, while with an expansionary monetary policy, the interest rate falls.

What is an Expansionary fiscal & monetary policy?

This is when an increases in money supply is stimulated by raising spending or cut taxes while the latter is when the cost of borrowing i reduced to stimulate an economy.

Therefore, the Option A is correct.

Read more about fiscal policy

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ReNew Corporation raises funds to build renewable energy systems by issuing 3-year bonds with a coupon rate of 5% and a face value of $1,800. Assume that the market interest rate for a 3-year bond issued by a firm like ReNew is currently the same as the coupon rate. The price of each of these bonds is , which means that the bonds sell at .

Answers

Answer:

$1,800

Explanation:

The price of the bond today is the present value of future cash flows, which are the coupon payments and the face value receivable by bondholders at redemption in 3 years.

When a bond has the same coupon rate as the yield, the bond would sell at par which is the $1,800 par value.

This is further affirmed using the formula below:

bond price=face value/(1+r)^n+annual coupon*(1-(1+r)^-n/r

face value=$1,800

r=yield=5%

n=number of annual coupons in 3 years=3

annual coupon=face value*coupon rate=$1800*5%=$90

bond price=$1800/(1+5%)^3+$90*(1-(1+5%)^-3/5%

bond price=$1800/1.05^3+$90*(1-(1.05)^-3/0.05

bond price=$1800/1.157625+$90*(1-0.863838)/0.05

bond price=$1800/1.157625+$90*0.136162/0.05

bond price=$ 1,554.91  +$ 245.09  

bond price=$ 1,800.00  

 

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Data used in budgeting:

Fixed element
per month Variable element per unit
Revenue — $34.20
Direct labor $0 $6.20
Direct materials 0 13.80
Manufacturing overhead 37,000 1.70
Selling and administrative expenses 25,500 0.20
Total expenses
$62,500

$21.90
Actual results for October:

Revenue $228,900
Direct labor $41,130
Direct materials $93,235
Manufacturing overhead $43,500
Selling and administrative expenses $30,470
The direct materials in the flexible budget for October would be closest to:
A. $91,770
B. $93,965
C. $92,460
D. $93,055

Answers

Answer:

A. $91,770

Explanation:

The direct materials in the flexible budget for October:

Cost = Variable Cost + Fixed Cost

Variable Cost = Actual level of activity*Direct material Variable element per unit = 6,650 units * $13.80 = $91,770

Fixed Cost = $0

So, the direct materials in the flexible budget for October = $91,770 + 0 = $91,770.

Give an example of one good or service produced in the United States using the command model. Justify your example using research (where did you find this).

Answers

Answer:

An example of production under the command system in the United States is that of the production of roads and passable roads throughout the nation. In this case, it is the production of a public service, and as such it is controlled by the government in all stages of its production: from the identification of the need, through the tender, the construction authorization and the supervision of the results, everything is controlled by the government. This implies that individuals or private companies cannot by their own initiative create this type of road, but rather depend exclusively on the will of the government.

Assume the economy of Ucheland is currently at full employment. The government of Ucheland reduces the tax rate on household interest earnings.

a. What will happen to private savings in Ucheland?
b. Draw a correctly labeled graph of the loanable funds market, and show the effect of the change in private savings identified in part (a) on the equilibrium real interest rate.

Answers

Answer:

a) since the tax rate oh household interest earnings increases, the number of households that will save money will increase, and the households that were already saving money might increase the amount saved. As a result, private savings will increase in Ucheland.

b) see attached image

The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow: Accounts Fees earned $809,500 Office expense 295,200 Miscellaneous expense 10,600 Wages expense 450,900 Everett McCauley invested an additional $37,600 in the business in exchange for common stock, and $15,600 of dividends were paid during the year. Retained earnings as of June 1, 2017, was $340,000.

Required:
Prepare a retained earnings statement for the year ended May 31, 2018.

Answers

Answer:

$377,200

Explanation:

Preparation for a retained earnings statement for the year ended May 31, 2018

First step is to calculate the Net income

Net income During The Year

Accounts Fees earned $809,500

Less Office expense 295,200

Miscellaneous expense 10,600

Wages expense 450,900

Net Income $52,800

Second step is to calculate the Change In Retained Earnings

Dividends $15,600

Net Income $52,800

Change In Retained Earnings $37,200

($52,800-$15,600)

Now let calculate retained earnings statement

Beginning retained earnings $340,000

Add Change In Retained Earnings $37,200

($52,800-$15,600)

Retained Earning May 31, 2018 $ $377,200

($340,000+$37,200)

Therefore the retained earnings statement for the year ended May 31, 2018 is $377,200

Categorizing U.S. taxes
Which of the following taxes are regressive?
a) A sales tax that adds 5% to the sale of all items
b) The U.S. payroll tax (a constant tax on wages up to a certain amount, after which the marginal tax rate is 0%) is a tax.
c) The U.S. income tax

Answers

Answer:

A

Explanation:

A regressive tax is a tax system where the same tax rate is applied uniformly. As a result, those earning less income are taxed higher than those earning more income.  

Sales tax is an example of a regressive tax.

If sales tax is 5%. Worker A earns $100 and worker B earns $1000. Both buy a good worth $50 before tax.  the sales tax is worth $2.5.

The tax comprises $2,5 / 100 = 2.5% of worker A's income and $2,5 / $1000 = 0.025% of Worker B's income.

It can be seen that worker A who earns less income is taxed higher

Fill in the blanks with the category of the expanded accounting equation (assets; liabilities; owner, capital; owner, withdrawals; revenues; expenses).
Inventory
Retained Earnings
Dividends
Cost of Goods Sold
Utilities Payable
Service Revenue
Accounts Payable
Rent Expense

Answers

Answer and Explanation:

The classification is as follows;

Inventory  = current assets

Retained Earnings  = stockholder equity

Dividends = dividend  

Cost of Goods Sold  = expense

Utilities Payable  = current liabilities

Service Revenue  = revenue

Accounts Payable  = current liabilities

Rent Expense = expense

In this way it could be classified and the same is relevant

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