Holly Company has the following information for December 1 to December 31. All direct materials are 100% complete.

Beginning balance December 200 units, 20% complete for conversion $14,000
Completed 800 units and transferred to finished goods inventory $131,182
Direct materials 54,000
Direct labor 34,000
Factory overhead Property taxes 6,000
Depreciation 32,000
Utilities 18,000
Indirect labor 4,000
Ending balance December 31, 300 units, 40% complete 30,818

Required:
Calculate equivalent units using the weighted-average and FIFO methods.

Answers

Answer 1

Answer:

Weighted Average : Materials = 1,100 units, Conversion Costs = 920 units

FIFO : Materials = 1,100 units, Conversion Costs = 1,260 units

Explanation:

Weighted Average

Materials

Ending Work In Process (300 ×100 %)         =  300 units

Completed and Transferred (800 ×100 %)   = 800 units

Equivalent units in respect to materials       = 1,100 units

Conversion Costs

Ending Work In Process (300 ×40 %)                    =  120 units

Completed and Transferred (800 ×100 %)            = 800 units

Equivalent units in respect to conversion costs   = 920 units

FIFO

Materials

To finish  Opening Work in Process (200 × 0%)    = 0 units

Started and Completed (800 × 100%)                    = 800 units

Ending Work in Process (300 × 100%)                   = 300 units

Equivalent units in respect to materials                =1,100 units

Conversion Costs

To finish  Opening Work in Process (200 × 80%)    = 160 units

Started and Completed (800 × 100%)                       = 800 units

Ending Work in Process (300 × 40%)                        = 300 units

Equivalent units in respect to materials                    =1,260 units


Related Questions

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

How are bonds a safer investment than stock?

A. Bonds are safer because they are loans with a guaranteed interest rate for return

B. Bonds are sager because they are paid with with taxes

C bonds are safer because they are paid by the stock market

D bonds are safer cause they qre assets with gauranteed return from the government


Can be mutiple answers​

Answers

Answer: D and B

Explanation:

The stock market is where you invest where you want to and hope the money will grow bigger by the company growing bigger. Bonds are you paying a certain amount of money and the government will pay back a little back at a time so if the government doesn't pay which is very unlikely is the reason why bonds are safer.

Which of the following is/are inconsistent with the semi-strong form of the efficient market hypothesis? [I] Significant non-random price movements [II] Price overreaction to the public release of new information [III] Superior performance of professional traders [IV] Abnormal profits from illegal insider trading
A. I and III
B. II and IV
C. I and II
D. All are inconsistent with the semi-strong form of the EMH

Answers

Answer:

C. I and II

Explanation:

Semi strong form of efficient market hypothesis is a situation where stock prices adjust quickly to any new public information that circulates in the market. It assumes that stock prices incorporates the effect of all information which is publicly available in the market.

The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as

Select one:
a. Fiscal neutrality.
b. Inflation.
c. Complete crowding out
d. A recession.

= Complete crowding out​

Answers

Answer: The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as

Select one:

a. Fiscal neutrality.

b. Inflation.

c. Complete crowding out

d. A recession.

Explanation:

The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as complete crowding out.

What is fiscal policy?

A fiscal policy refers to the use of government spending and policies for influencing economic conditions.

The situation in which expansionary fiscal policies do not lead to a rise in aggregate output is referred to as complete crowding out.

Therefore, C is the correct option.

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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

Assume an investor purchases the net assets of an investee for the cash purchase price is $75,600. The investor is willing to purchase the investee's business for this amount because the fair value of PPE is $70,560 and the fair value of a (previously unrecognized) customer list is $15,120 (the fair values of all other assets and liabilities are equal to their book values). The investee company reports the following balance sheet on the acquisition date:



Cash $2,800 Accounts payable $5,600
Accounts receivable 5,600 Accrued liabilities 8,400
Inventories 11,200 -
Current assets 19,600 Current liabilities 14,000
Long-term liabilities 11,200
PPE, net 28,000 Stockholdersâ equity 22,400
Total assets $47,600 Total liabilities and equity $47,600

Required:
Provide the journal entry if the investor pays cash and purchases the assets and assumes the liabilities of the investee company (assume that the fair value of the assets is equal to their book values).

Answers

Answer and Explanation:

The journal entry is given below;

Cash                         $2,800

Account receivable $5,600

Inventories                $11,200

PPE                            $28,000

     To Account payable $5,600

     To Accrued liabilities $8,400

     To Long term liabilities  $11,200

     To Cash                          $22,400

(Being the cash is paid is recorded)

Here all the assets are debited as it increased the assets and credited all the liabilities except cash as it increased the liabilities and the remaining balance left would be credited to cash account

National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $900,000 on January 1, 2018. The bonds mature on December 31, 2021 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31.
(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the standard factor tables.)
Required:
1. Determine the price of the bonds at January 1, 2018.
2. Prepare the journal entry to record their issuance by National on January 1, 2018.
3. Prepare the journal entry to record interest on June 30, 2018.
4. Prepare the appropriate journal entries at maturity on December 31, 2021.
Table Values Based On:
n=
i=
Cash Flow Amount Present Value
Interest
Principal
Price of Bonds

Answers

Answer:

1. Determine the price of the bonds at January 1, 2018.

PV of face value = $900,000 / (1 + 5%)⁸ = $612,525

PV of coupon payments = $40,500 x 6.4632 (PV annuity factor, 5%, 8 periods) = $261,760

market price of bonds = $874,285

2. Prepare the journal entry to record their issuance by National on January 1, 2018.

January 1, 2018, bonds issued at a discount

Dr Cash 874,285

Dr Discount on bonds payable 25,715

    Cr Bonds payable 900,000

3. Prepare the journal entry to record interest on June 30, 2018.

Dr Interest expense 43,714

    Cr Cash 40,500

    Cr Discount on bonds payable 3,214

4. Prepare the appropriate journal entries at maturity on December 31, 2021.

Dr Bonds payable 900,000

Dr Interest expense 43,714

    Cr Cash 940,500

    Cr Discount on bonds payable 3,214

Making money is always on the agenda of the media.

True
False

Answers

It say true lol. The media is corrupt and selfish

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.

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

The Institute of Management Accountants' Statement of Ethical Professional Practice for management accountants includes the elements of:
A. Competence, confidentiality, independence, and objectivity.
B. Competence, confidentiality, integrity, and credibility.
C. Competence, accuracy, integrity, and independence.
D. Competence, confidentiality, integrity, and relevance.

Answers

Answer: competence, confidentiality, integrity, and credibility.

Explanation:

The Institute of Management Accountants' Statement of Ethical Professional Practice for management accountants reflects on the globalization of the accounting profession. The statement is based on ethical principles such as responsibility, fairness, integrity and honesty.

Also, the statement consist of elements such as competence, confidentiality, integrity, and credibility.

If workers demand and receive higher real wages as a result of successful wage push, the cost of production __and the aggregate supply curve shifts

Select one:
a. falls; left
b. rises; left
c. falls, right
d. rises; right

= rises; left​

Answers

Answer:

b. rises; left

Explanation:

Wage is the amount incurred in compensating workers for their services. It is a major expense for producers. Wage is one of the inputs in the manufacturing process; producers need labor services to continue operating. An increase in wages raises the production cost of the finished goods.

An increase in the cost of production may limit the quantity of output from the producers. As production cost increase, producers will require additional funds to finance the high production costs. Since resources are scarce in every industry, producers may opt to lower their output to avoid incurring high costs. A decrease in the production volume shifts the aggregate supply curve to the left.

A competitive firm produces a product using labor and plastic. The firm is initially in equilibrium. If the cost of plastic suddenly increases, which of the following will occur?
A. The demand curve for the product will shift to the left.
B. The firm's demand curve for plastic will shift to the left.
C. The firm will increase the number of units offered for sale.
D. The firm will definitely go out of business, since competitive firms earn zero economic profits in equilibrium.
E. The firm's marginal costs will increase at each level of output.

Answers

Answer:

B

Explanation:

Option (e), which states that the firm's marginal costs will rise at each output level, is the right choice.

Does the marginal cost of a production increase?

The marginal cost of production often increases as output volume increases. The manufacturer can decide how to divide resources among the production units in order to maximize output by using marginal cost.

What occurs when a company's marginal cost increases?

They make the unit and supply it if the sale price exceeds the marginal cost. It would not be economically feasible to make it if the marginal cost was higher than the price. Therefore, manufacturing will continue until the sale price equals the marginal cost.

Why eventually does marginal cost increase with output?

As output grows, the marginal cost eventually rises as a result of the declining marginal product of labor.

When output declines, what happens to the marginal cost?

At this point, marginal cost decreases until it reaches a minimum due to economies of scale and the Law of Diminishing Returns. The marginal cost then grows as output rises.

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Use the following items to determine the toata assets ,total liabilities , net worth , total cash inflows and total cash outflows.
Rent for the month $ 650 Monthly take-home salary$ 2,185
Spending for food $ 345 Cash in checking account$ 450
Savings account balance $ 1,890 Balance of educational loan 2,160
Current value of automobile $8,800 Telephone bill paid for month 65
Credit card balance $ 235 Loan payment 80
Auto insurance $ 230 Household possessions 3,400
Video equipment $ 2,350 Payment for electricity 90
Lunches/parking at work $ 180 Donations 160
Personal computer $ 1,200 Value of stock investment 860
Clothing purchase $ 110 Restaurant spending 130

Answers

Answer:

Determining the total assets, total liabilities, net worth, total cash inflows, and total cash outflows:

1. Total assets

Cash in checking account         $ 450

Savings account balance        $ 1,890  

Current value of automobile  $8,800  

Household possessions           3,400

Video equipment                  $ 2,350

Personal computer               $ 1,200

Value of stock investment        860

Total assets                         $18,950

2. Total liabilities

Rent for the month              $ 650

Balance of educational loan 2,160

Credit card balance             $ 235

Total liabilities                  $3,045

3. Net worth

Total assets                      $18,950

Total liabilities                   ($3,045)

Net worth                        $15,905

4. Total cash inflows

Monthly take-home salary $ 2,185

5. Total cash outflows

Spending for food                  $ 345

Telephone bill paid for month    65

Loan payment                             80

Auto insurance                     $ 230  

Payment for electricity               90

Lunches/parking at work     $ 180

Donations                                160  

Clothing purchase               $ 110

Restaurant spending             130

Total cash outflows         $1,390

Explanation:

a) Data and Calculations:

Rent for the month $ 650

Monthly take-home salary$ 2,185

Spending for food $ 345

Cash in checking account$ 450

Savings account balance $ 1,890

Balance of educational loan 2,160

Current value of automobile $8,800

Telephone bill paid for month 65

Credit card balance $ 235

Loan payment 80

Auto insurance $ 230

Household possessions 3,400

Video equipment $ 2,350

Payment for electricity 90

Lunches/parking at work $ 180

Donations 160

Personal computer $ 1,200

Value of stock investment 860

Clothing purchase $ 110

Restaurant spending 130

Candice is a jewelry shop owner, specializing in beaded necklaces. For each of the following inputs, classify each item as a variable input or a fixed input in the long run.
1. upper management salaries
2. hourly labor
3. shipping
4. two-year lease on office and retail space
5. chairs
6. computers
7. beads

Answers

Answer and Explanation:

The classification of the each item as a variable input or fixed input is as follows:

1. upper management salaries  = variable input

2. hourly labor  = variable input

3. shipping  = variable input

4. two-year lease on office and retail space  = variable input

5. chairs  = variable input

6. computers  = variable input

7. beads = variable input

As all the items are calculated as a variable so no fixed input would be considered

Your coworker is creating the headings for a report. What advice should you give her?
Do not use first- and second-level headings.
Strive for parallel construction within heading levels.
Use headings as antecedents for pronouns.
Review the following report excerpt, and complete the sentence.
To: Tracy Smallman
From: Diane Martinez, Rene Guzman
Date: June 8, 2009
Subject: Online Certificate Program Status Report
The following status report provides an update on the progress of the Online Certificate Program. The report includes updates on the project outline, a summary of key findings, and an overall evaluation of the project to date.
Progress Update
Phase 1 (Development) is well underway, with research phase and discovery phase milestones completed. In the last month, we completed a course pilot and collected user feedback. Key findings have directed the development of new course offerings and guided the initial development of additional content for course modules to be launched next fall.
The heading "Progress Update" might be improved to read ________
To ensure formatting does not change, how should a report be sent?
As an Excel file
As a Word file
As a PDF file
As a Power Point file
Which of the following is best used for conveying complex information quickly and clearly?
Infographics
Slide decks
Templates
Written text
Which of the following are components of an effective report heading? Check all that apply.
It occurs no more often than every three pages in a report
It is grammatically equal to other headinggs in its level
It uses creative punctuation
It is short and clear
It has punctuation correctly applied
The heading "Progress Update" might be improved to read_______ "Currently accomplished tasks"
To ensure formatting does not change, how should a report Progress Update: Phase 1 accomplishments"
As an Excel file

Answers

Answer:

1. I will offer the following advice for creating effective reports:

a. Make use of appropriate heading levels

b. Use parallel construction

c. Use first- and second-level headings for short reports

d. Capitalize and underline headings carefully

e. Keep headings short and clear

f. Do not use headings as antecedents for pronouns, and

g. Include at least one heading per report page when appropriate.

2. The heading "Progress Update" might be improved to read ________

"Currently Accomplished Tasks"

3. To ensure formatting does not change, a report should be sent:

As a PDF file

4. To convey complex information quickly and clearly, the best is:

Infographics

5. Components of an effective report heading include:

 

It is short and clear

Explanation:

When writing informational reports, ensure that you emphasize the facts, using appropriate formats to convey them.  But if it is an analytical report, the emphasis shifts to the reasoning process and the conclusion(s) to be drawn.  Clear and short headings, including subheadings, are important in every report.  They give reports more clarity and direction, guiding the reader appropriately.

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.

IN the economic order quantity model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to:_______

a. increase.
b. decrease.
c. remain unchanged.
d. change without regard to carrying costs.

Answers

Answer:

b. decrease

Explanation:

In the EOQ model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to decrease.

Carrying cost is placed in denominator of the EOQ formula hence as we increase denominator the total quantity will fall. If the carrying cost is high, then we would place lesser order to reduce such costs.

Also, if carrying costs decrease while all other costs remain unchanged, the number of orders placed would be expected to decrease because there is already excess of inventory due to which the new orders have to be decreased to utilize the already pending inventory.

Value added per employee is a financial measure of how much product was sold vs. how many employees worked during the
period. Is this statement true or false?

Answers

This statement is true !!

On January 1, 2018, Legion Company sold $200,000 of 10% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $177,000, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of:

Answers

Answer:

$10,620

Explanation:

Calculation for what Legion should report bond interest expense for the six months ended June 30, 2018,

Bond interest expense=(12%/2 semiannually*$177,000)

Bond interest expense=6% × $177,000

Bond interest expense=$10,620

Therefore Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of:$10,620

Hamby Inc. has sales of $2,076,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses.

Variable Fixed
Cost of goods sold $779,000 $614,000
Selling expenses 96,700 63,500
Administrative expenses 81,600 70,800

Required:
Prepare a CVP income statement for the quarter ended March 31, 2017.

Answers

Answer:

Net income= $370,301

Explanation:

First, we need to calculate the total variable costs and the total fixed costs:

Total variable cost= 779,000 + 96,700 + 81,600

Total variable cost= $957,399

Total fixed cost= 614,000 + 63,500 + 70,800

Total fixed cost= $748,300

Now, we make the CVP income statement:

Sales= 2,076,000

Total variable cost= (957,399)

Total contribution margin= 1,118,601

Total fixed cost= (748,300)

Net income= $370,301

The C&C Candy Company uses machine hours to allocate manufacturing overhead. The company estimates $150,000 worth of manufacturing overhead and 3,000 machine hours. The batch ticket for Batch 127 reveals the following information:

3,000 oz of chocolate at 50 cents per ounce
400 hours of direct labor at $15 per hour
180 machine hours 82,500 candy bars produced Batch Completed July 16, 2019.

Determine the cost of one bar.

Answers

Answer:

$0.20

Explanation:

Predetermined overhead rate = Estimated manufacturing overhead / Machine hours = 150000/3000 = 50

Applied overhead = Machine hours worked * Predetermined overhead rate = 180 * $50 = 9000

Direct material                       $1,500 (3,000*0.50)

Direct labor                            $6,000 (400 hours*$15)    

Manufacturing overhead $9000

Total cost                                $16,500

Number of units = 82500 candy bars

So, the Unit cost = Total cost / Number of units = $16,500/82,500 units = 0.20

So, the cost of one bar is $0.20

Provide an example of how an international company (such as Unilever or Mondelez International) changes its distribution channels and/or marketing messages based on country.

Answers

Answer:

The examples of the given circumstances are provided below.

Explanation:

Interpretations of how the international corporation (including such Unilever) was indeed changing the distribution platform:

Unilever transforms this same distribution network to potential consumers as well as ensures immediate access includes a multitude of shareholder but instead everyday items. The corporation has a more adaptable distribution network which virtually guarantees direct services to consumers worldwide thru all the different retailers, shopping centers as well as other chain stores.

Interpretations of how and why the International Corporation is changing targeted advertising:

Unilever Advertisements have been created on the basis of the cultural values including its Country-Advertising Notifications besides Unilever impacts negatively on either the values of the people throughout order to determine if the project is uniquely equipped to address the requirements of the cultural identity as well as to raise the effectiveness of purchases.

Coronado Industries had the following accounts and balances:

Accounts payable $31400 Equipment $34900
Accounts receivable 4550 Land 34100
Buildings ? Unearned service revenue 10100
Cash 15250
Total stockholders' equity ?

If the balance of the Buildings account was $70200 and $5300 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity?

Answers

Answer:

15250

Explanation:

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Answer:

1637

Explanation:

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Which of the following answer options are your employer's responsibility? (OSHA)
(A) Develop a written hazard communication program
(B) Implement a hazard communication program
(C) Maintain a written hazard communication program

Answers

Answer: A, B, and C. ALL OF THE ABOVE!

Explanation:

They're all the correct answer.

An employer's OSHA responsibility with regard to a hazard communication program is (C) Maintain a written hazard communication program.

OSHA's HCS, 29 CFR 1910.1200 (e) specifically requires the employer to maintain a written hazard communication.

This written program includes maintenance of labels and other warning forms, safety data sheets.

It is also required that the employer should provide safety information and training, especially for its employees.

Thus, the responsibility of the employer is not to develop or implement a hazard communication program but to maintain a written hazard communication program.

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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.

When drafting an end-of-year summary report to her supervisor about the status and sales of the restaurant's newest pizza, Diane omits details about negative customer feedback. By only reporting positive feedback, which barrier of effective communication is she using?
A) deceptive tactics
B) perceptual differences
C) distractions
D) information overload​

Answers

A) Deceptive tactics

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.

At the beginning of the year, Vendors, Inc., had owners' equity of $49,850. During the year, net income was $6,150 and the company paid dividends of $4,250. The company also repurchased $8,350 in equity. What was the cash flow to stockholders for the year

Answers

Answer: $12,600

Explanation:

Based on the information that have been given in the question, the cash flow to stockholders for the year would be calculated as:

= Dividends Paid - (Ending Common Stock - Beginning Common Stock)

= $4250 - {[$49850 - $8350] - $49850}

= $4250 - [$41500 - $49850]

= $4250 - (-$8350)

= $4250 + $8350

= $12,600

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:

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)

Other Questions
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