Vegas Finance Company reported the following: Common stock, $10 par, 100,000 shares authorized, 80,000 shares issued and outstanding What is the effect of issuing 1,000 shares of common stock at $15 per share?
a. Cash increases $10,000.
b. Common Stock increases $15,000.
c. Additional Paid-in Capital increases $5,000.
d. Retained Earnings increases $5,000.
c
You might also like to view...
Failure to prepare formal closing entries will produce a misstated
a. Income Summary account balance. b. Retained Earnings account balance. c. total asset figure on the balance sheet. d. total liability figure on the balance sheet.
Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true?
a. The operating lease method treats leases as executory contracts. b. The operating lease method does not recognize a leased asset on the lessee's balance sheet. c. The operating lease method does not recognize a lease liability on the lessee's balance sheet. d. Under the operating lease method, the lessor does not recognize rent revenue as the lessee uses the leased asset over time. e. Under the operating lease method, the lessee recognizes rent expense as the lessee uses the leased asset over time.
Fossil Manufacturing uses a predetermined overhead rate of $17.80 per direct labor-hour. This predetermined rate was based on 11,000 estimated direct-labor-hours and $195,800 of estimated total manufacturing overhead. The company incurred actual manufacturing overhead costs of $194,000 and 10,500 direct labor-hours.Required:a. Determine the amount of underapplied or overapplied manufacturing overhead for the period.b. Assuming that the company closed manufacturing overhead to cost of goods sold, make the journal entry to close manufacturing overhead.c. What is the effect of this entry on the company's gross margin?
What will be an ideal response?
In their letter to the KPMG CEO, the four Senators refer to the sales practices as representing a “massive fraud”. Discuss whether or not you agree with their claim.
What will be an ideal response?