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valkas [14]
2 years ago
11

H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H

. Tillman a legal fee of approximately $12500 by issuing 2900 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $4.80 per share. Given this information, the journal entry for J. Laney. to record this transaction is:
Business
1 answer:
babunello [35]2 years ago
8 0

Answer:

The journal entry for J. Laney. to record this transaction is:

Legal Expenses $13,920 (debit)

Common Stock $2,900 (credit)

Share Premium $11,020 (credit)

Explanation:

The Common Stocks are carried at par value of $1. This means that any price paid in excess of the par value is accounted for in the Share Premium Account.

The Common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.

Share Premium = ($4.80 - $1.00) × 2900 shares

                          = $3.80 × 2,900

                          = $11,020

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Answer:

The correct answer is letter "C": an increase in the bargaining power of suppliers of a critical input.

Explanation:

Porter's Five (5) Forces is an analysis scheme created by Harvard School Professor Michael E. Porter (<em>born in 1947</em>). The ultimate goal of this analysis is to help managers set their expectations because profitability decreases as competition increases. Three of the five forces relate to industry (horizontal) participants - <em>the threat of substitutes established rivals, and new entrants</em>. The other two relate to the vertical participants - <em>the bargaining of suppliers and consumers</em>.

In the case, as airline fuel suppliers are consolidating, this would represent the bargaining of suppliers factor in Porter's theory. They could joint to decide quantities supplied or even prices.

3 0
2 years ago
The lower a firm's inventory turnover, the longer it takes the firm to collect payment on its sales. a. faster the firm collects
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Answer:

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4 0
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In​ 1975, interest rates were 7.85 % and the rate of inflation was 12.3 % in the United States. What was the real interest rate
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Answer:

The correct answer is -3.963%.

Explanation:

According to the scenario, the given data are as follows:

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So, we can calculate the real interest rate by using the following method:

Real interest rate =[ (1 + Interest rate) ÷ ( 1 + inflation rate) ] - 1

By putting the value, we get,

Real interest rate =[ (1 + 0.0785) ÷ ( 1 + 0.123) ] - 1

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So, the purchasing power of your savings decreased by 3.963%.

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Answer:

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Explanation:

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