The process by which an innovation's use spreads throughout a market group over time and among various categories of adopters is known as diffusion of innovation.
Typically, when businesses decide to develop new products, the process is lengthy and divided into stages?
There are four stages in a product's life cycle: introduction, growth, maturity, and decline. A product is just an idea, and in today's business world, it won't get any further unless it goes through research and development (R&D) and is found to be possible and potentially profitable.
Even though it varies by industry, it can be roughly divided into six stages: costing, sourcing, ideation, research, planning, prototyping, and sourcing. What to think about at each stage as you develop your own original product idea can be found here.
Learn more about develop new products here:
https://brainly.com/question/7035196
#SPJ4
Budgeting Quick Check
Define autonomous consumption (1 point)
Autonomous consumption is the amount that a person must spend on basic needs (such as food and
housing) regardless of his or her income.
Autonomous consumption is the amount that a person chooses to spend over the costs of his or her basic
needs, such as food and housing
Autonomous consumption is the amount that a person spends on himself or herself and does not include any
shared expenses, such as the cost of housing if other people also live in the dwelling
Autonomous consumption is the amount that a person spends on other people and does not include any
expenses that are spent solely for oneself, such as food or luxury items
Option A. Autonomous consumption is the amount that a person chooses to spend over the costs of his or her basic needs, such as food and housing.
What is autonomous consumption?The costs that consumers must incur even when they have no extra money to spend are referred to as autonomous consumption. No matter how much money or income a customer has available at any particular time, some things must be bought. Paying for these needs can cause a consumer who is strapped for cash to borrow money or use money they had been saving.
Paying for necessities when a consumer is strapped for cash can force them to borrow money or use money they had been saving.
Read more on autonomous consumption here: https://brainly.com/question/13465871
#SPJ1
name the method of determining what sales volume must be reached before total revenue equals total costs.
The method of determining what sales volume must be reached before total revenue equals total costs is a Break-even Analysis.
Break-even analysis is an accounting process for small businesses to determine at what point a company, new product, or service will be profitable.
It is a financial calculation used to determine how many products or services must be sold to cover production costs. To calculate the break-even point in units, use the formula: Break-even point (units) = fixed costs ÷ (revenue). Unit price - variable cost per unit) or breakeven point (sales) = sales using the formula fixed costs ÷ contribution margin. Here's what we'll be looking at.Learn more about revenue here: https://brainly.com/question/16232387
#SPJ4
When you think about a leader, what words would you use to describe that person?
Answer: Someone who has the most power
Explanation:
The purpose of the stock market is to make?
Answer: The stock market helps companies raise money to fund operations by selling shares of stock, and it creates and sustains wealth for individual investors. Companies raise money on the stock market by selling ownership stakes to investors. These equity stakes are known as shares of stock.
Assume that you have just been made manager of a team of young employees that includes a recent hire from Asia. Many people from Asian countries feel that it is inappropriate to bother their boss or express dissatisfaction. How might you encourage your Asian team to ask you questions, let you know when he/she is having difficulties and bring any concerns to your attention? (If you’re an Asian student, what would encourage you to communicate with your boss?
Given the circumstances and information above, I will encourage my Asian team to ask me questions, let me know when he/she is having difficulties, and bring any concerns to my attention by Leading by example.
Encouraging your employees to ask more questionsIt is not a hidden knowledge that Asians are generally conservative in their approach. Also, employees tend to be reserved when it comes to dealing with their bosses. Thus, it is not uncommon to see Asian employees not wanting to bother their bosses with questions, even when things are not going well.
However, to encourage my Asian employees to ask questions I would do the following:Lead by example: this implies that I would be asking them simple but critical questions about their work and working conditionI will base my relationships with them on the drive and not just on the question.I will ensure to listen to what’s being asked rather than listen to them grudginglyI will continue to ensure I maintain and improve upon these strategies over and over.Hence, in this case, it is concluded that there are different ways to encourage my Asian employee to ask the right question in the workplace.
Learn more about Asian Culture here: https://brainly.com/question/25871918
#SPJ1
Ball-Mart, a baseball card store, had a 1968 Nolan Ryan rookie card in almost perfect condition for sale. Any baseball collector would have known that the card was worth at least $1,000; the published monthly price guide listed its market value at $1,200. Bryan was a 12-year-old boy with a collection of over 40,000 baseball cards. When Bryan went to Ball-Mart, Kathleen, who knew nothing about cards, was filling in for the owner. The Ryan card was marked "1200," so Bryan asked Kathleen if this meant twelve dollars. She said yes and sold it to him for that amount. When Ball-Mart's owner realized the mix-up, he sued to rescind the contract. Who wins and WHY?
The defendant in this case is the person that would have to win the case that we have here. The defendant is Bryann
He would win because by the time that he made this purchase, it was confirmed to him that 12.00 dollars was the price. The mistake was from the attendant.
What is the issue that is presented in this case?Ms. Kathleen, the owner's replacement in B Mart, has no knowledge about rookie cards or baseball cards. To a 12-year-old child who owned a collection of 40,000 baseball cards, she sold "The R card" for $12.
The card had a $1,200 value. The owner of the B Mart filed a lawsuit to have the agreement revoked after realizing the error.
Given the aforementioned instance, the owner of B Mart was unable to recover much of the damage he sustained as a result of Ms. Kathleen's lack of knowledge regarding the costs of the products. If Ms. Kathleen had received sufficient training regarding her job duties, she would have offered the customer the products at a marked-down price.
In this case, the owner of B Mart lacks the necessary evidence to demonstrate that he is right and the other party is wrong.
As a result, the defendant would prevail in the dispute with the harmed party.
Bryan would therefore win.
Read more on contracts here: https://brainly.com/question/28180355
#SPJ1
The PP&E gross book value at the start of the month is 60,000, and the CAPEX of the month is 12,000. The accumulated depreciation at the start of the month is 25,000; the depreciation expense of the month is 750.
The net book value of PP&E calculated from the data above is _____.
The net book value off property plant and equipment is $46,250 at the end of the month. The net book value of PP&E calculated from the data above is $46,250.
What is depreciation?Depreciation is does systematic allocation of cost of the asset over the useful life. Depreciation is charged every month every month to the relevant asset asper the usage of the asset. Depreciation reduces the amount of an asset each month according to the usage of the asset. Depreciation can be charged on different methods.
The calculation is shown below,
The net book value of PP&E can be calculated as
$60,000 + $12,000 - $25,000 - $750 = $46,250
Net book value of PP&E can be calculated as: Add CAPEX for the month in opening assets value then deduct accumulated depreciation and current month expense of depreciation this will result in net book value of property plant end equipment at the end of the month.
Learn more about Depreciation at https://brainly.com/question/26965066
#SPJ1
A project currently generates sales of $10 million, variable costs equal 50% of sales, and fixed costs are $2 million. The firm’s tax rate is 21%. Assume all sales and expenses are cash items. a) What are the effects on cash flow, if sales increase from $10 million to $11 million? b) What are the effects on cash flow, if variable costs increase to 65% of sales?
The effect on cash flow when sales increases from $10 million to $11 million is an increase in cash flow by $0.395 million.
The effect on cash flow when variable costs increase to 65% of sales is a decrease in cash flow by $-1.185 million.
What are the effects on cash flow?The formula that can be used to determine the cash flow generated from the project is:
Cash flow = (sales - total cost) x (1 - t)
Where: t = tax rate
Total cost is the sum of fixed cost and variable cost. Variable cost is the cost that varies based on the level of output. Fixed cost remains the same regardless of the level of output.
Total cost = fixed cost + variable cost
Fixed cost = $2 million
Variable cost = 50% x 10 million
= 0.5 x 10 million = 5 million
Total cost = $5 million + $2 million = $7 million
Cash flow when sales is $10 million = (10 million - 7 million) x (1 - 0.21)
3 million x 0.79 = $2.37 million
Variable cost when sales is 11 million = 0.5 x $11 million = $5.5 million
Total cost = $5.5 million + 2 million = $7.5 million
Cash flow when sales is 11 million = (11 - 7.5 million) x (1 - 0.21)
$3.5 million x 0.79 = $2.765 million
Change in cash flow = $2.765 million - $2.37 million = $0.395 million
Variable cost when it increases to 65% of sales = 0.65 x $10 million = 6.5 million
Total cost = 6.5 million + 2 million = $8.5 million
Cash flow = (10 million - 8.5 million) x (1 - 0.21)
$1.5 million x 0.79 = $1.185 million
Change in cash flow = $1.185 million - $2.37 million = $-1.185 million
To learn more about cash flow, please check: https://brainly.com/question/10714011
#SPJ1
Leadership is the activitgity of managing people by providing tasks and time to complete them to meet deadloines.
a. true
b. false
Which of the following is an example of a direct question?
•"I understand that you wish to improve your supply chain, right?"
•"Why do you think you want to upgrade your motor fleet?"
•"What are your needs for wireless technology?"
•"Does your firm want to reduce its production costs?"
An example of a direct question would be: Does your firm want to reduce its production costs? Option d.
What is a direct question?A direct inquiry usually ends in a question mark and is one that can be replied (i.e., it is not a statement). Have you ever texted the incorrect person, for instance? When eating pizza, do you fold it?
The indirect question will have if if the direct question is a "yes or no" inquiry and lacks a question word like what, who, when, where, why, or how. Do you like Italian food, Tom? Do you know if Tom enjoys Italian cuisine? Are your folks coming to supper with us?
Direct inquiries make no assumptions, allowing the respondent to completely express their own narrative using their own words. This reveals the most precise understanding of their motivations. Leading questions, however, skew results due to our own prejudice.
Read more on direct questions here: https://brainly.com/question/26117534
#SPJ1
Which type of health insurance policy should you purchase if you never want to worry about referrals?
Answer:
Credit union profits go back to members, who are shareholders. This enables credit unions to charge lower interest rates on loans, including mortgages, and pay higher yields on savings products, such as share certificates (or CDs). Lower fees. Federal credit unions are exempt from federal taxes
Explanation:
true or false
In measuring GDP, the income approach is more accurate than the expenditure approach.
This is true. In measuring GDP, the income approach is more accurate than the expenditure approach.
What is the income approach of GDP measurement?According to the income approach, which is used to calculate GDP, all economic expenditures must equal the entire revenue produced by the creation of all economic goods and services.
The gross operating surplus (GOS) and mixed income are added together as part of the income approach to calculating gross domestic product (GDP), along with employee remuneration, production taxes and import subsidies subtracted from those amounts.
The income approach is a method for valuing real estate that calculates fair value using the revenue the property generates. It is computed by dividing the capitalization rate by net operating income.
Read more on GDP here;
https://brainly.com/question/1383956
#SPJ1
Banks only play a very small role in the economy, accepting deposits and making loans ?true or false? explain
Commercial banks compete with each other mainly through interest rates? Right or wrong explanation
Will market interest rates rise if the central bank expands the volume of money?True or false explanation
Would the most effective and secure commercial banking regulator be the ministry of justice? Right or wrong explanation
money laundering makes the total money supply in the economy increase, thus stimulating the development of the economy?
Social insurance works not for profit, so it is not a little financial? right or wrong explanation
Thanks you!
Banks only play a very small role in the economy, accepting deposits and making loans is false.
Commercial banks compete with each other mainly through interest rates is wrong.Will market interest rates rise if the central bank expands the volume of money is falseNo, the most effective and secure commercial banking regulator will not be the ministry of justice.Money laundering makes the total money supply in the economy increase, thus stimulating the development of the economy is true.Social insurance works not for profit, so it is not a little financial is wrong.What is the impact of money in the economy?Lower interest rates are often a result of increased money supply, which leads to more investment and more money in consumers' hands, which in turn boosts consumption. In response, companies place larger orders for raw materials and boost output.
Interest rates and the amount of money in a country are inversely related. This implies that if a country's economy has a bigger supply of money, interest rates should be lower. Rates ought to be higher, on the other hand, if the money supply is smaller.
Therefore, By ensuring banks have competent management, regulations assist prevent them from making poor investments or taking on too much risk. Social insurance has been found to significantly lower poverty rates in the US, particularly for children and older people.
Learn more about money supply from
https://brainly.com/question/28121138
#SPJ1
Which analytic used in healthcare is calculated as a proportion of new cases compared to person-time unit?
A. Cumulative incident
B. Morbidity rate
C. Prevalence
D. Incidence rate
Option D. The incidence rate is the analytic used in healthcare is calculated as a proportion of new cases compared to person-time unit.
What is the incidence rate?The rate at which a new event appears over a predetermined amount of time is referred to as the incidence rate. Simply put, the incidence rate is the number of new cases over a specified period of time (the numerator) divided by the total population at risk for the disease (the denominator).
Although cumulative incidence is usually referred to as a "rate," it actually refers to the percentage of people who experience the event over a predetermined period of time.
Read more on healthcare here: https://brainly.com/question/27741709
#SPJ1
Five subtracted from the product of 10 and a number is less than 30. Use the variable b for the unknown number.
QUESTION 3 of 10: For a venue seeking to optimize ticket sales by providing different services at different prices for different clients
attending the same event, it is essential to tailor a _______
offer that can satisfy customer demand
For a venue seeking to optimize ticket sales by providing different services at different prices for different clients attending the same event, it is essential to tailor a Multi-ticket offer that can satisfy customer demand.
Customer satisfaction is a metric that measures a company's customers' level of satisfaction with its goods, services, and capabilities. Information about customer satisfaction, such as surveys and ratings, can assist a business in deciding how best to adjust or improve its goods and services.
Customer satisfaction must be a company's first priority. This rule is applicable to all types of organisations, including commercial enterprises, retail and wholesale businesses, governmental agencies, service providers, nonprofits, and every division within one. Businesses shouldn't presume to understand what customers want. Instead, it's critical to comprehend the consumer's perspective through making use of techniques like polling, focus groups, and customer surveys. Organizations can better customise their services and goods to their clients by using these technologies to acquire in-depth insights into what they desire.
To know more about Customer satisfaction visit:
https://brainly.com/question/28387894
#SPJ1
Merger Company has 10 employees, each of whom earns $2,000 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Prepare the March 31 journal entry to record the March payroll taxes expense.
The appropriate journal entry to record the transaction is: Debit Payroll taxes expense 273, Credit FICA Social Security Payable (6.2%) $124, Credit FICA Medicare Payable (1.45%) $29, Credit FUTA (.6%) $12, Credit SUTA (5.4%) $108
How to prepare the journal entry?Merger Company journal entry
March 31
Debit Payroll taxes expense 273
($124 + $29 + $12 +$108)
Credit FICA Social Security Payable (6.2%) $124
( 6.2% × $2,000)
Credit FICA Medicare Payable (1.45%) $29
(1.45% × $2,000)
Credit FUTA (.6%) $12
( .6% × $2,000)
Credit SUTA (5.4%) $108
( 5.4% × $2,000)
(To record payroll taxes expense)
Therefore the entry is Debit Payroll taxes expense 273, Credit FICA Social Security Payable $124, Credit FICA Medicare Payable $29, Credit FUTA$12, Credit SUTA $108.
Learn more about journal entry here: https://brainly.com/question/14279491
#SPJ1
Ways to improve sustainability in the maritime sector
The improve sustainability in the maritime sector are:
Building Green Shipssetting up a standrdWhat is sustainability ?Sustainability can be described as the process of fulfilling the needs of current generations and at the same time, having the ability not to compromise the needs of future generations.
It should be noted that when referring to the improvement of the sustainability in the maritime sector then one of the best way to do this is to be able to Build Green Ship because this will help in the minimization of the carbon footprints which can be dangerous to the environment.
Read more about sustainability at:
https://brainly.com/question/6705059
#SPJ1
I am writing a content analysis for my business intro class and i'm not exactly sure what to put in the discussion section on my assignment. the company my team chose was Apple and i was wondering what information to include?
In a typical content analysis, such as yours in which "Apple firm" is chosen, the information contained in this analysis are to address the followings:
What topics resonate with our audience?What content is driving the most engagement?Are there any patterns in the engagement data that we can exploit? etc.What is the meaning of content analysis?Basically, a content analysis refers to a research tool used to determine the presence of certain words, themes or concepts within some given qualitative data. By using a content analysis, the researchers can quantify and analyze the presence, meanings and relationships of such certain words, themes or concepts.
In marketing research, the content analysis are used to understand the words being used within a specific channel, the meaning of the text and how they are related.
Read more about content analysis
brainly.com/question/28203470
#SPJ1
although a foreign exchange transaction can involve any two currencies, most transactions involve u.s. dollars on one side.
a. true
b. false
Answer:
B
Explanation:
Which type of advertising is used to sell a particular brand of product?
Answer:
Brand advertising is a form of advertising which helps establish connections and build strong, long-term relationships with consumers over time. Companies that use brand advertising aim to get long-term positive recognition.
1. In 2018, Fast Company identified Apple as the number one most innovative company in the world. Why do you think Apple has been given this accolade?
Apple was given accolade because it was recognized as first company to have market value of $1 trillion
Reasons for Apple's Success
Constant focus on making things easier and more convenient for peopleProduct development and market penetrationThe PC industry's revolutionGraphical user interface and the mouse were added to consumer productsEnhanced music playersStarted the revolution in smartphonesIntroducing cutting-edge innovations that serve as trendsetters for the rest of the sectorWhat happened in 2018?
Apple made history on August 2, 2018, when it became the first publicly traded U.S. business to have a market capitalization of $1 trillion. The Apple brand and its continuous success are substantially influenced by both performance and design.
Apple's success can be attributed to a global strategy that went beyond regular desktop computers to encompass mobile and wearable technology. They make the consumer feel good about themselves.
To know more about Apple Company Refer
https://brainly.com/question/23878113
#SPJ1
Vanessa, a single mother, has three children, Mariah (7), Alejandro (12), and Brianna (18). Brianna is a full-time student. Vanessa's adjusted gross income is $68,950, and her tax liability is $5,757. All three children are Vanessa's qualifying child dependents. What is the total of Vanessa's Child Tax Credit and Other Dependent Credit?
The total of Vanessa's Child Tax Credit and Other Dependent Credit, based on her tax liability and children, is $5, 757.
What is the Child Tax Credit?Child Tax Credit is a credit that tax payers are eligible for if they have children who depend on them. The age of the children is such that they have to be below the age of 19.
For every child that qualifies for the Child Tax credit, the tax payer gets a tax credit of $2, 000.
Vanessa has a total of 3 children who are below the age of 19 and so they all qualify which means that Vanessa qualifies for a Child Tax Credit of:
= 2, 000 x 3
= $6, 000
However, the child tax credit cannot exceed the actual tax liability of $5, 757.
Vanessa's Child Tax Credit and Other Dependent Credit is therefore the sum of $5, 757.
Find out more on Child Tax Credit at https://brainly.com/question/14328499
#SPJ1
How does expected inflation occur?
Money expansion, according to the monetary theory of inflation, is the cause of inflation. The fundamental source of variability in the rate of inflation is variation in the pace of money growth.
Inflation is expected because money expansion is anticipated. In the short run, monetary policy determines money growth. Thus, inflation expectations are generated as a result of information signals observed by the economic agent. The sources of information signals encompass all existing communication methods. According to Trading Economics global macro models and analyst forecasts, the US inflation rate is predicted to be 7.80 percent by the end of this quarter.
To learn more about Inflation, click here.
https://brainly.com/question/29347039
#SPJ1
Which of the following is an advantage of having a task force?
Kevin paid $2,550 in qualifying expenses for his daughter, Jasmine, who attended a community college. What is Kevin's lifetime learning credit without regard to AGI limitations or other credits?
Without regard to AGI limitations or other credits, Kevin's lifetime learning credit can be found to be $510
How to find the lifetime learning credit?To find the lifetime learning credit when there is no regard to AGI limitations or other credits, Tax laws are such that one gets the 20% of the first $10, 000 expense that qualify to be spent on community college.
The means that Kevin's lifetime learning credit for paying expenses for Jasmine are:
= Qualified expenses x Percentage of the first qualifying expenses
= 2, 550 x 20%
= $510
Find out more on lifetime learning credit at https://brainly.com/question/15074499
#SPJ1
How do Coca-Cola, Pepsi, Unilever, and Johnson & Johnson benefit from their various strategies with regard to plastic disposal? How do you feel about what they are doing?
Carrying your own reusable alternative allows you to avoid purchasing single-use plastic water bottles. Make sure you select an environmentally friendly and socially responsible substitute, such as a reusable bottle made of safe aluminum, glass, or stainless steel.
What are the methods for getting rid of plastic?Plastic water bottles are safe to drink from, but there are a few other things you should be aware of. Although BPA is not present in plastic water bottles, once they have been used, they could harbor dangerous microorganisms.
Therefore, The two-liter PET plastic bottle was invented by Coca-Cola. It gained popularity because it doesn't break, can be resealed, is lightweight, and is recyclable.
Learn more about plastic here:
https://brainly.com/question/28420086
#SPJ1
Information concerning the capital structure of the Petrock Corporation is as follows:
December 31,
20X0 20X1
Common stock 90,000 shares 90,000 shares
Convertible preferred stock 10,000 shares 10,000 shares
8%, $1,000 par, convertible bonds $ 1,000,000 $ 1,000,000
During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 20X1, was $285,000, and the company’s income tax rate was 21%.
Required:
What was diluted EPS for 20X1?
(For all requirements, round your answers for "Earnings per share" to 2 decimal places.)
The diluted EPS for 20X1 for Petrock Corporation was $3.86.
What is the diluted EPS?The diluted earnings per share (EPS) is the earnings per share after all outstanding convertible securities have been converted.
Some of the convertible securities include convertible preferred shares, convertible debentures, stock options, and warrants.
Before Conversion:December 31,
20X0 20X1
Common stock 90,000 shares 90,000 shares
Convertible preferred stock 10,000 shares 10,000 shares
8%, $1,000 par, convertible bonds $ 1,000,000 $ 1,000,000
After Conversion:20X1
Common stock 90,000 shares
Convertible preferred stock 20,000 shares
Convertible bonds 30,000 shares
Total diluted number of shares 140,000 shares
Net Income Adjustment:Net income for the year = $285,000
Adjusted net income before tax $360,759 ($285,000 ÷ (1 - 21%)
Dividends to preferred stock 24,000 ($2.4 x 10,000)
Interest paid to bondholders 300,000 ($1,000,000 x 30%)
Total income before tax $684,759
Tax expenses 143,799
Adjusted net income after tax $540,960
Diluted EPS = $3.86 ($540,960 ÷ 140,000)
Learn more about diluted earnings per share at https://brainly.com/question/22374514
#SPJ1
Fortune Incorporated is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are budgeted at 150,000 for the first quarter. Cost of goods sold is $14 per unit. Other expense information for the first quarter follows.
Sales Commissions 8% of sales dollars
Rent $42,000 per quarter
Advertising $562,500 per quarter
Office salaries $225,000 per quarter
Depreciation $120,000 per quarter
Interest 1.25% quarterly on $250,000 note payable
Tax rate 30%
Prepare a budgeted income statement for the first quarter ended March 31. (Round your intermediate and final answers to the nearest whole dollar.)
The budgeted income statement for Fortune Incorporated for the first quarter that ended March 31 is as follows:
Fortune Incorporated
Budgeted Income StatementFor the first quarter ended March 31
Sales Revenue $3,750,000
Cost of goods sold 2,100,000
Gross profit $1,650,000
Other Expenses:
Sales commission $300,000
Rent 42,000
Advertising 562,500
Office salaries 225,000
Depreciation 120,000
Interest expense 3,125
Total expenses $1,252,625
Income before tax $397,375
Tax expense 119,213
Net income $278,162
What is the budgeted income statement?The budgeted income statement is a financial performance statement that shows the expected sales revenue and net income for a period.
The income statement figures are based on estimates and not actual results.
Sales Revenue = $3,750,000 ($25 x 150,000)
Cost of goods sold = $2,100,000 ($14 x 150,000)
Other Expenses:
Sales commission = $300,000 ($3,750,000 x 8%)
Rent per quarter = $42,000
Advertising per quarter = $562,500
Office salaries per quarter = $225,000
Depreciation expense per quarter = $120,000
Interest expense per quarter = $3,125 ($250,000 x 1.25%)
Tax rate = 30%
Tax expense = $ ($ x 30%)
Learn more about the budgeted income statement at https://brainly.com/question/22850896
#SPJ1
The stockholders’ equity section of Night Corporation’s balance sheet at January 1 follows:
Common stock, $5 par value, 300,000 shares authorized, 60,000 shares $300,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value $480,000
From treasury stock 30,000 510,000
Retained earnings 348,000
1,158,000
Less: Treasury stock (6,000 shares) at cost 138,000
Total Stockholders’ Equity $1,020,000
The following transactions affecting stockholders’ equity occurred during the year:
Jan. 8 Issued 15,000 shares of previously unissued common stock for $21 cash per share.
Mar. 12 Sold all of the treasury shares for $28 cash per share.
June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $25 per share.
July 10 Issued the stock dividend declared on June 30.
Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $26 cash per share.
Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31.
a. Prepare journal entries to record the foregoing transactions.
b. Prepare a statement of stockholders’ equity. Net income for the year is $341,000.
a) The journal entries to record the transactions are as follows:
Journal Entries:Jan. 8 Debit Cash $315,000
Credit Common Stock $75,000
Credit Additional paid-in capital $240,000
(15,000 shares of previously unissued common stock for $21 cash per share.)
Mar. 12 Debit Cash $168,000
Credit Treasury Stock $138,000
Credit Additional paid-in capital $30,000
June 30 Debit Retained Earnings $93,750
Credit Dividend Distributable $93,750
July 10 Debit Dividend Distributable $93,750
Credit Common Stock $18,750
Credit Additional Paid-in Capital $75,000
Oct. 7 Debit Treasury Stock $12,500
Debit Additional Paid-in Capital $52,500
Credit Cash $65,000
Dec. 18 Debit Cash Dividend $76,250
Credit Dividend Payable $76,250
b) The preparation of a statement of stockholders’ equity is as follows:
Night Corporation
Statement of Stockholders' Equity:Common stock, $5 par value, 300,000 shares authorized,
78,750 shares issued $393,750
Additional paid-in capital
In excess of par value $855,000
From treasury stock 52,500 907,500
Retained earnings 519,000
1,820,250
Less: Treasury stock (2,500 shares) at cost 65,000
Total Stockholders’ Equity $1,755,250
Transaction Analysis:Jan. 8 Cash $315,000 Common Stock $75,000 Additional paid-in capital $240,000
15,000 shares of previously unissued common stock for $21 cash per share.
Mar. 12 Cash $168,000 Treasury Stock $138,000 Additional paid-in capital $30,000
June 30 Retained Earnings $93,750 (75,000 X 5% X $25) Dividend Distributable $93,750
July 10 Dividend Distributable $93,750 Common Stock $18,750 (3,750 x $5) Additional Paid-in Capital $75,000
Oct. 7 Treasury Stock $12,500 Additional Paid-in Capital $52,500 Cash $65,000
Acquired 2,500 shares of common stock as treasury stock at $26 cash per share.
Dec. 18 Cash Dividend $76,250 Dividend Payable $76,250
60,000 + 15,000 + 3,750 - 2,500 = 76,250 shares x $1 = $76,250
Retained Earnings:Beginning balance $348,000
Stock dividend -93,750
Cash dividend -76,250
Net income 341,000
Ending balance $519,000
Common Stock:Beginning balance $300,000
Additional shares 75,000
Stock dividend 18,750
Ending balance $393,750
Preferred Stock:Beginning balance $510,000
Additional shares 240,000
Treasury stock 30,000
Stock dividend 75,000
Ending balance $855,000
Learn more about journalizing equity transactions at https://brainly.com/question/13750629
#SPJ1