A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What's the correct entry to record the transaction?

Answers

Answer 1
Answer:

The correct entry to record the transaction concerning the company's sale of 10,000 shares of previously authorized stock is a debit to Cash of $100,000 and a credit to Common Stock $100,000.

Data Analysis:

Number of shares sold = 10,000

Par value =$10 per share

Cash $100,000 Common Stock $100,000

Thus, the correct entry to record this stock sale is a debit to Cash of $100,000 and a credit to Common Stock $100,000.

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Answer 2
Answer:

Final answer:

The correct journal entry to record the transaction would be to debit Cash for $100,000 and credit Common Stock for $100,000 in line with the number of shares sold and their par value.

Explanation:

When a company sells shares of its authorized stock at par value, the funds received are recorded in the company's financial accounts. The correct journal entry would be to debit (increase) Cash, and credit (increase) Common Stock. In this scenario, where 10,000 shares of stock are sold at a par value of $10 per share, this would result in a $100,000 increase in both the company's Cash and Common Stock accounts. The journal entry would look like this:

  • Debit Cash $100,000
  • Credit Common Stock $100,000

It is crucial to understand the stock issuing process, such as rate of return, in the business world. Investors purchase stock with an expectation either to receive dividends or to experience a capital gain- an increase in the stock value.

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Which of the following best describes why the aggregate demand curve is downward sloping? a. As the aggregate price level decreases, the stock of existing physical capital increases.
b. As the aggregate price level increases, consumer expectations about the future change.
c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.
d. As a good\'s price increases, holding all else constant, the good\'s quantity demanded decreases.

Answers

Answer: c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.

Explanation:

The Aggregate Demand (AD) curve is used to measure the impact that price level has on the expenditure in the economy.

The AD comprises of Investment, Consumption Spending, Government spending and Net Income.

When prices are high, households will spend less as they cannot afford to spend a lot which will reduce consumption spending.

Another result of a high price level is that people will have less money to save and so there will be a lower supply of loanable funds.

Both of these components of the AD reduce when prices increase and vice versa. This is why the AD is downward slopping.

The aggregate demand curve is downward sloping because an increase in the aggregate price level causes consumer and investment spending to fall.

The correct answer is c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.

The aggregate demand curve represents the relationship between the aggregate price level and the quantity of goods and services demanded in an economy. It is downward sloping because when the aggregate price level increases, consumer purchasing power decreases as the cost of goods and services rises. This leads to a decrease in consumer and investment spending, causing the aggregate demand curve to slope downwards.

For example, when the price of gasoline increases, individuals and businesses may cut back on their spending on other goods and services to compensate for the higher cost of fuel. This decrease in purchasing power and spending ultimately affects the overall demand in the economy.

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Calculate the EOQ size for the following case. What is the EOQ size and the number of orders placed per year? For your answer, round up the figures up to 0 decimal points. (size/number) The annual demand for the item is 2580 units. It costs $500 to place an order and costs $20 per item to carry it a year without passing it to the customer.

Answers

Answer:

EOQ = 359 units

Number of order placed =  7.2 times

Explanation:

The Economic Order Quantity (EOG) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the ordering cost.

It is computed using he formulae below

EOQ = √ (2× Co× D)/Ch

C0- 500, Ch- 20, D- 2,580

EOQ=  √ (2× 500× 2580)/20

        =359.16

EOQ = 359 units

Number of order place d per year = Annual demand / order size

Number of order placed = 2,580/ 359

                                        = 7.2 times

11) Individual Web pages or clusters of pages that function as supplements to a primary site are ________. A) search engine optimization B) pay-per-click ads C) delighters D) microsites E) touch points

Answers

Individual Web pages or clusters of pages that function as supplements to a primary site are  microsites.

What is a microsite?

  • Microsites are brand-specific websites (or a single web page) that businesses use to advertise their particular goods, occasions, or campaigns. These have a different URL than their corporate websites and are hosted on their own domain or a subdomain of the company.
  • A microsite is a branded content website, sometimes known as a "content centre," that is independent of your brand's URL and/or company website.
  • Microsites can be subdomains of your main website or even a subdirectory within it; they are not required to have entirely unique URLs.

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When an organization hires new employees, there may be no more important part of that process than the organizational socialization process. This process takes place over 3 steps or phases; a. anticipatory socialization—those activities that take place prior to the first day on the job;
b. encounter—where the newcomer learns what the organization is really like; and
c. change and acquisition—where members master important tasks and roles.
d. This process can be achieved through a variety of processes and tactics.
e. This exercise will challenge your understanding of some of the characteristics of these tactics and processes.

Answers

Answer: The correct answers are "a. anticipatory socialization—those activities that take place prior to the first day on the job;", "b. encounter—where the newcomer learns what the organization is really like;" and  "c. change and acquisition—where members master important tasks and roles.".

Explanation: The 3 steps or phases of the organizational socialization process are:

1) Anticipatory socialization: those activities that take place prior to the first day on the job;

2) Encounter: where the newcomer learns what the organization is really like;

3) Change and acquisition: where members master important tasks and roles.

Gallardo Co. is involved in a lawsuit as a result of an accident that took place September 5, 2017. The lawsuit was filed on November 1, 2017 and claims damages of $1,000,000. (a) At December 31, 2017, Gallardo's attorneys feel it is remote that Gallardo will lose the lawsuit. How should the company account for the effects of the lawsuit? (b) Assume instead that a December 31, 2017, Gallardo's attorney feel it is probable that Gallardo will lose the lawsuit and be required to pay $1,000,000. How should the company account for this lawsuit? (c) Assume instead that at December 31, 2017, Gallardo's attorneys feel it is reasonably possible that Gallardo could lose the lawsuit and be required to pay $1,000,000. How should the company account for this lawsuit?

Answers

Answer:

Following are the solution to the given points:

Explanation:

In point a, As it would be impossible that although the failure of the lawsuit is remote, the same cannot be recorded as well as avoided.

In point b, Its prosecutor thinks Gallardo's failure of the case (which would be likely to occur) is therefore likely to be reported throughout the books, that legal expenses must be paid and the civil responsibility measured at $10,00000 credited.

In point c, In the case is fairly probable, this can occur only if it is reported throughout the corresponding Balance Sheet accounts.

Final answer:

Gallardo Co.'s response to the lawsuit depends on their attorneys' opinions. If it's remotely believed that the company will lose, no need to recognize the liability or disclose it in financial statements. If the loss is estimated as probable, recognize the $1,000,000 liability and expense; if reasonably possible, no liability needs to be recognized, but disclosure in the financial statement notes is needed.

Explanation:

By the Generally Accepted Accounting Principles (GAAP), Gallardo Co. should account for the lawsuit differently based on the attorneys' estimation of loss.

(a) If the attorney's opinion is that it's remote that Gallardo will lose the suit, the company doesn't have to make a provision or disclose it in its financial statements. Since they believe the likelihood of loss is minimal, no liability needs to be recognized.

(b) If the attorney believes it's probable that Gallardo will lose, then according to GAAP, the company will have to recognize a liability of $1,000,000 and record a lawsuit expense in the income statement.

(c) If it's reasonably possible that Gallardo could lose, the company doesn't have to recognize a liability, but it should disclose the lawsuit and the potential financial impact in the notes to its financial statements.

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When using project management software, estimates of work time should be entered only at the work package level; the rest of the WBS items are just groupings or _____ tasks.

Answers

Answer:Summary task

Explanation: