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pochemuha
2 years ago
6

On October 31, the stockholders’ equity section of Carla Vista Co.’s balance sheet consists of common stock $396,000 and retaine

d earnings $409,000. Carla Vista is considering the following two courses of action: (1) Declaring a 5% stock dividend on the 99,000 $4 par value shares outstanding (2) Effecting a 2-for-1 stock split that will reduce par value to $2 per share.
Business
2 answers:
erastovalidia [21]2 years ago
7 0

Answer:

Explanation:

Common Stock $648,000

$680,400 $648,000

Paid-in Capital $0. $36,450. $0

Retained Earnings $400,000

$331,150 $400,000

SE Equity $1,048,000

$1,048,000. $1,048,000

Outstanding shares 81,000 85,050 162,000

vovangra [49]2 years ago
6 0

Answer:

(1)

retained earnigns 19,800 debit

   common stock         19,800 credit

(2)

no entry required

Explanation:

396,000 common stock / $4 each = 99,000

99,000 shares x 5% = 4,950 new shares

4,950 shares x $4 each = 19,800 stock dividends

the split will not change the equity composition as the common stock will double but, also their value will be halved accordingly.

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XYZ Advisers is a federal covered adviser with an office in State A. It has 400 clients in State A; 6 clients in State B; and 3
Stels [109]

Answer:

None of the states.

Explanation:

Since XYZ Advisers is a federal covered adviser, it implies that it is registered with the Security and Exchange Commission (SEC) but not registered with any of the states. Therefore, only the SEC has its registration that it can revoke.

However, it is compulsory for the XYZ Advisers or any other adviser carrying out a business in any state to notify the State in which it is carrying out a business. This is to enable the relevant State to carry out an investigation and issue an order against the adviser whenever the the Administrator of a State received a complaint against a federal covered adviser. But the state still does not have the registration of the federal covered adviser it can revoke.

Therefore, none of the State Administrator(s) has the authority to revoke XYZ Adviser's registration.

8 0
2 years ago
A firm with concentrated ownership is a partnership, never a corporation. may enjoy more accounting transparency than firms with
Zina [86]

Answer:

may give rise to conflicts of interest between dominant shareholders and small outside shareholders.

Explanation:

Concentration of ownership of a firm occurs when only a person or a few individuals own large portions of the company.

Decision making on important aspects of the business are taken by these circle of people.

Concentrated ownership is an internal governance system where the majority owners have high degree of control on how the business operates.

This leads to conflict between the major owners and other small shareholders. The small shareholders may feel left out in decisions concerning the business.

4 0
2 years ago
You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You
Nesterboy [21]

Answer:

Cost of equity, re= 0.098356 or 9.84 %

Explanation:

D1 = $ 1.25

P0 = $ 27.50

gL = 5 % = 0.05

F = 6 % = 0.06

Cost of equity, re can be calculated using the formular below:

Cost of equity, re = D1/ {P0 x (1- F)} + gL

                             = $ 1.25 / {$ 27.50 x (1- 0.06)} + 0.05

                             = $ 1.25 / ($ 27.50 x 0.94) + 0.05

                             = $ 1.25 / 25.85 + 0.05

                           = 0.048356 + 0.05

Cost of equity, re= 0.098356 or 9.84 %

8 0
2 years ago
Gentry Inc. purchased 90% of Gaspard Farms on January 5, 2019. During 2019, Gentry sold Gaspard Farms for $650,000 goods which h
Wewaii [24]

Answer:

$5572500

Explanation:

consolidated cost of goods sold for 2020 would be:

consolidated cost of goods sold = ( total of goods sold by bought company ) - ( intra-entity transfer ) + ( ending unrealized gross profit ) - ( beginning unrealized gross profit )

= ( 5400000 + 1200000 ) - ( 1000000 )+(1000000*20%)*20% - {(650000*15%)*(450000/650000)}

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= $5572500

3 0
2 years ago
A 480 item pencil and paper standardized test of 20 personality dimensions used in selecting managers, sales associates and lead
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Answer:

Hogan Personality Inventory

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The Hogan Personality Inventory (HPI) is commonly used to predict job performance by measuring normal personality dimensions. It is specially used to measure certain specific traits and abilities: leadership and planning. It is based on the Five-Factor Model and was specifically developed for working adults in the business industry.  

It is part of the Hogan Assessment tests used to predict job performance.

6 0
2 years ago
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