Answer: over the counter
Explanation: In simple words, over the counter markets are the platform in which the securities like foreign exchange are traded without any supervision. There is no monitoring authority in such markets as opposed to the structure of stock exchanges.
Foreign currencies are traded in over the current markets as these are highly fluctuating in values and the margins are very low in trading such securities. Therefore, to pay a mediator is not feasible while dealing in foreign currencies.
Hence from the above we can conclude that the correct answer is option B.
Answer:
The incremental annual net cash inflows provided by the new machine would be $2,525.
Explanation:
In order to calculate the incremental annual net cash inflows provided by the new machine we would have to use the following formula:
incremental annual net cash inflows=saving in annual operating cost+contribution earned on additional sales
=( $4,125-$3,730)+(21,300×$0.10)
=$395+$2,130
=$2,525
Hence, The incremental annual net cash inflows provided by the new machine would be $2,525.
Camera $11,200 $10,000
Camcorders 7,700 8,800
DVDs 13,900 12,700
Compute the lower-of-cost-or-net realizable value for company's inventory.
Answer:
$30,400
Explanation:
The computation of the lower-of-cost-or-net realizable value is shown below:-
Inventory Cost Net realizable value Lower cost
Camera $11,200 $10,000 $10,000
Camcorders $7,700 $8,800 $7,700
DVDs $13,900 $12,700 $12,700
The Lower cost $30,400
To compute the lower-of-cost-or-net realizable value for the company's inventory, compare the cost of each inventory category to its net realizable value (NRV) and choose the lower value.
To compute the lower-of-cost-or-net realizable value for the company's inventory, you need to compare the cost of each inventory category to its net realizable value (NRV) and choose the lower value. In this case, the cost data and market data are given for each category.
Therefore, the lower-of-cost-or-net realizable value for the company's inventory is $10,000 for the Camera category, $7,700 for the Camcorders category, and $12,700 for the DVDs category.
#SPJ3
Common Stock, 5,000,000 shares authorized, 2,000,000 shares outstanding $10,000,000
Paid-in Capital in Excess of Par - Preferred Stock $200,000
Paid-in Capital in Excess of Par - Common Stock $27,000,000
Retained Earnings $4,500,000
The following transactions affected stockholders' equity during 2018.
Jan. 1 - 30,000 shares of preferred stock issued at $22 per share.
Feb. 1 - 100,000 shares of common stock issued at $20 per share.
June 1 - Declared a 5% stock dividend on the outstanding common stock when the stock is selling for $25 per share.
June 20 - Issued the stock dividend declared on June 1.
July 1 - 30,000 shares of common treasury stock purchased at $10 per share.
Sept. 15 - 10,000 shares of treasury stock reissued at $11 per share.
Dec. 31 - The preferred dividend is declared, and a common dividend at $0.50 per share is declared.
Dec. 31 - Net income is $2,100,000.
Required:
1. Prepare Journal Entries to Record the Transactions.
2. Prepare the stockholders' equity section for Hatch Company at December 31, 2018. Show all supporting computations.
1. The preparation of the journal entries to record the stock transactions for the year is as follows:
Jan. 1, 2018: Debit Cash $660,000
Credit Preferred Stock $600,000
Credit Additional paid-in capital-Preferred Stock $60,000
Feb. 1, 2018: Debit Cash $2,000,000
Credit Common Stock $500,000
Credit Additional paid-in capital-Common Stock $1,500,000
June 1, 2018: Debit Retained Earnings $2,625,000
Credit Stock Dividend Distributable $2,625,000
June 20 Debit Stock Distributable $2,625,000
Credit Common Stock $525,000
Credit Additional paid-in capital-Common Stock $2,100,000
July 1, 2018: Debit Treasury Stock $150,000
Debit Additional paid-in capital- Common Stock $150,000
Credit Cash $300,000
Sept. 15, 2018: Debit Cash $110,000
Credit Treasury Stock $50,000
Credit Additional paid-in capital- Common Stock $60,000
Dec. 31, 2018: Debit Dividends: Preferred Stock $3,600,000
Debit Common Stock $1,092,500
Credit Dividends Payable $4,692,500
Dec. 31 Debit Income Summary $2,100,000
Credit Retained Earnings $2,1000,000
2. The Stockholders' Equity Section of Hatch Company's Balance Sheet at December 31, 2018, is as follows:
8%, $20 par value Preferred Stock:
Authorized stock, 1,000,000 shares
180,000 shares, Issued and Outstanding $3,600,000
Additional paid-in capital - Preferred Stock $260,000
Common Stock, $5 par value:
Authorized stock, 5,000,000 shares
2,215,000 shares outstanding $11,075,000
Additional paid-in capital- Common Stock $30,810,000
Treasury Stock (20,000 shares) ($100,000)
Retained Earnings $717,500
Supporting Calculations:
180,000 shares, Issued and Outstanding = $3,600,000 (3,000,000 + 600,000)
Additional paid-in capital - Preferred Stock $260,000 ($200,000 + $60,000)
Common Stock, $5 par value:
Authorized stock, 5,000,000 shares
2,215,000 shares outstanding = $11,075,000 ($10m + $500 + $525 + $50)
Additional paid-in capital- Common Stock = $30,810,000 ($27m + 1.5m + $2.1m - $150 + $60)
Treasury Stock = $100,000 ($150,000 - $50,000)
Retained Earnings = $717,500 ($4,500,000 + $2,100,000 - $2,625,000 - $4,692,500)
Data and Calculations:
Capital stock:
8%, $20 par value Preferred Stock:
Authorized stock, 1,000,000 shares
150,000 shares, Issued and Outstanding = $3,000,000
Additional paid-in capital - Preferred Stock $200,000
Common Stock, $5 par value:
Authorized stock, 5,000,000 shares
2,000,000 shares outstanding = $10,000,000
Additional paid-in capital- Common Stock = $27,000,000
Retained Earnings = $4,500,000
Transactions Analysis:
Jan. 1, 2018: Cash $660,000 Preferred Stock $600,000 Additional paid-in capital-Preferred Stock $60,000
Feb. 1, 2018: Cash $2,000,000 Common Stock $500,000 Additional paid-in capital-Common Stock $1,500,000
June 1, 2018: Retained Earnings $2,625,000 Stock Dividend Distributable $2,625,000 (2,000,000 + 100,000 x 5%) 105,000 shares at $25 per share
June 20, 2018: Stock Distributable $2,625,000 Common Stock $525,000 Additional paid-in capital-Common Stock $2,100,000
July 1, 2018: Treasury Stock $150,000 Additional paid-in capital- Common Stock $150,000 Cash $300,000
Sept. 15, 2018: Cash $110,000 Treasury Stock $50,000 Additional paid-in capital- Common Stock $60,000
Dec. 31, 2018: Retained Earnings: Preferred Stock Dividend $3,600,000 (180,000 x $20) Common Stock Dividend $1,092,500 (2,185,000 x $0.50) Dividends Payable $4,692,500
Dec. 31 Income Summary $2,100,000 Retained Earnings $2,1000,000
Learn more about recording stock transactions here: brainly.com/question/25819234
Answer:
Explanation:
Date Accounts and explanations Debit ($) Credit ($)
Jan. 1, 2018 Cash (39,900*$23 per share) 917,700
7% Preferred stock (39,900 shares * $20 per share) 798,000
Paid-in capital in excess of par - Preferred stock (39,900 shares * $3 per share) ($23 - $20) 119,700
(To record the issue of preferred shares with premium for cash)
Feb. 1, 2018 Cash (53,400*$21 per share) 1,121,400
Common stock (53,400 shares * $5 per share) 267,000
Paid-in capital in excess of par - Common stock (53,400 shares * $16 per share) ($21 - $5) 854,400
(To record the issue of preferred shares with premium for cash)
June. 1, 2018 Common stock (2,127,000 shares + 53,400 shares = 2,180,400)*$5 per share 10,902,000
Common stock (2,180,400 shares * 2 * $2.5 per share) 10,902,000
(To record stock split of 2 shares issued for every one share held)
July. 1, 2018 Treasury stock (32,000 shares * $10 per share) 320,000
Cash 320,000
(To record the purchase of treasury stock by cash)
Sept. 15, 2018 Cash 122,400
Treasury stock (10,200 shares * $10 per share) 102,000
Paid-in capital in excess of par - Treasury stock (10,200 shares * $2 per share) ($12 - $10) 20,400
Dec. 31, 2018 Income summary (Net income) 2,182,000
Retained earnings 2,182,000
(To record the net income at the end of the year)
Dec. 31, 2018 Retained earnings 1,348,380
Preferred dividends ($3,046,000 + $798,000)*7/100) 269,080
Common dividend (see note) (2,158,600*$0.5 per share) 1079300
(To record the declaration of dividends)
Working note:
Particulars In shares
Total shares issued 2,180,400
Less: Treasury shares 32,000
Add: Reissue of treasury shares 10,200
Total share to be accounted 2,158,600
Note: For stock split, no journal entry is required as there will be no change in the total value but only the number of shares will increase and per share will decrease keeping the total value same. Only memorandum entries are prepared.
The common stock dividend per share is confusing with another symbol whether it is $5 per share or $0.5 per share, so it is assumed as $0.5 per share is declared as dividend for common stock.
Note: Since no question is asked in this post, it is assumed that journal entries are required to record transactions that occurred during 2018.
Answer:
19.27%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-51,400
Cash flow each year from year 1 to 5 = $16,910
IRR = 19.27%
To find the IRR 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 IRR button and then press the compute button.
Answer:
DR Sales returns and Allowances ............................. $500
CR Accounts Receivable........................................................$500
Explanation:
Jepson returned $500 worth of goods so this would need to be accounted for by reducing the Accounts receivable amount by $500.
The returns will be accounted for in the Sales returns and allowances account which will be debited to reflect this.
Answer:
$9,725,000
Explanation:
The total cash received on the issue date is made of 95% of the bond's face value of $10,000,000 plus the three-month interest up to April 1 2017.
95% of face value=95%*$10,000,000=$9,500,000
three month interest accrued=$10,000,000*9%*3/12=$225,000
Total cash proceeds from bond issue=$9,500,000+$225,000
Total cash proceeds from bond issue=$9,725,000