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2 years ago

A company has the following transactions during the year related to stockholders’ equity.

Business

2 answers:

Dvinal [7]2 years ago

8 0

Answer:

February 1

Dr Cash 70,400

Cr Common stock 70,400

( to record the issuance of 4,400 no-par value common shares at $16 each)

May 15

Dr Cash 10,400

Cr Preferred stock 8,000

Cr Paid-in capital - preferred stock 2,400

( to record the issuance of 800 $10-par-value preferred shares at $13 each)

October 1

Dr Retained Earnings 2,340

Cr Dividend Payable - Common stock 1,980

Cr Dividend Payable- Preferred stock 360

( to record dividend declaration)

Oct 15: No entry required

October 31st

Dr Dividend Payable - Common stock 1,980

Dr Dividend Payable- Preferred stock 360

Cr Cash 2,340

( to record dividend payment)

Explanation:

Further Working notes:

* May 15: Actual cash receipt = issued price per share x share issuance = 13 x 800 = $10,400; Amount recorded in Preferred stock account = par value per share x share issuance = 10 x 800 = $8,000; Amount recorded in Paid-in capital account = (Issue price - Par value) x No of shares issuance = (13-10) x 800 = $2,400.

* Oct 1: Actual dividend paid out = Dividend paid to preferred stockholders + Dividend paid to common stock holders = 0.45 x 800 + 0.45 x 4,400 = $360 + $1,980 = $2,340.

VMariaS [17]2 years ago

6 0

Answer:

Accounting entries are attached.

Explanation:

Download xlsx

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Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the st

stealth61 [152]

Answer:

hello your question is incomplete below is the complete question and the missing table

Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the stock of the Frankfurter Sausage Company. Here is the recent price history of the two stocks: on the evidence of these six months how large would your short position in Frankfurter sausage needed to be to hedge you as far as possible against movements in the price of swiss Roll

answer : $42003667

Explanation:

$100 million in stocks

According to the data provided in the table attached below, to short the Frankfurt in order to hedge investment in Rolls is calculated below

we have to calculate the total return on both Roll corporation and Frankfurter sausage

for f-sausage

∑ (1 + monthly returns ) / 100

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Answer:

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Explanation:

Given Data:

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t = 20 year

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Investment amount obtained as

$A =P\times [1 + \frac{r}{n}]^{nt}$

Here n = 1

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A = $81832.68

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