Pina Colada Co. had the following transactions during the current period.

Mar. 2 Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $29,400 for services performed in helping the company to incorporate.
June 12 Issued 58,300 shares of $5 par value common stock for cash of $362,400.
July 11 Issued 1,025 shares of $100 par value preferred stock for cash at $130 per share.
Nov. 28 Purchased 2,520 shares of treasury stock for $78,000.

Requried:
Journalize the transactions.

Answers

Answer 1

Pina Colada Co. will record the following journal entries for the transactions.

Mar. 2 Debit Attorney's Fees $29,400

Credit Common Stock $25,000

Credit Additional Paid-in Capital - Common $4,400

To record the issuance of 5,000 shares at $5 par value for attorney's bill.

June  12 Debit Cash $362,400

Credit Common Stock $291,500

Credit Additional Paid-in Capital - Common $70,900

To record the issuance of 58,300 shares at $5 par value for $362,400.

July 11 Debit Cash $133,250

Credit Preferred Stock $102,500

Credit Additional Paid-in Capital -Preferred $30,750

To record the issuance of 1,025 shares of $100 par value at $130 per share.

Nov. 28 Debit Treasury Stock $12,600

Debit Additional Paid-in Capital - Common $65,400

Credit Cash $78,000

To record the purchase of 2,520 shares at $5 par for $78,000.

Data and Calculations:

Mar. 2 Attorney's Fees $29,400 Common Stock $25,000 Additional Paid-in Capital - Common $4,400

issuance of 5,000 shares at $5 par value.

June  12 Cash $362,400 Common Stock $291,500 Additional Paid-in Capital - Common $70,900

58,300 shares at $5 par value.

July 11 Cash $133,250 Preferred Stock $102,500 Additional Paid-in Capital -Preferred $30,750

1,025 shares of$100 par value at $130 per share

Nov. 28 Treasury Stock $12,600 Additional Paid-in Capital - Common $65,400 Cash $78,000

2,520 shares at $5 par for $78,000.

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Related Questions

How do you redeem a winning ticket lottery?
A) scan on pos
B) validate on terminal
C) picklist on POS
D): redemption barcode entered in the pis if no touch screen

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Answer:

4 Steps to Claim PCSO Lotto Prize

Go to the PCSO Main Office. Present two valid IDs (preferably signature-bearing government-issued IDs) and the winning ticket to the Prize Claim section of the Accounting and Budget Department. Fill out the required forms. Wait for the ticket to be validated.

Explanation:

No choices here

what are the conflict management styles and dispute resolution mechanism

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Answer:

Five styles for conflict management, as identified by Thomas and Kilmann, are: competing, compromising, collaborating, avoiding, and accommodating. Businesses can benefit from appropriate types and levels of conflict. That is the aim of conflict management, and not the aim of conflict resolution

A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 63 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.)

Answers

The effective annual percentage cost of its non-free trade credit is 13.08%/

Here, we are to calculate the effective annual percentage cost.

Given Information

Discount % = 2%

Discount Days = 8

Net Days = 45

Actual days = 68

Nominal % cost = Disc. %/(100 – Disc. %) × (365/(Actual days – Disc. days)

Nominal % cost = 2 /(100 - 2) * 365/(68   -8)

Nominal % cost = 2 /98 * 365/60

Nominal % cost = 0.0204081 * 6.083333

Nominal % cost = 0.1241496

Nominal % cost = 12.41%

n = 365/(63 - 8) = 6.64

Effective annual rate = (1 + Nominal % rate/n)^ n – 1

Effective annual rate = (1 + 0.1241/6.64)^6.64 - 1

Effective annual rate = 1.13083302405 - 1

Effective annual rate = 0.13083302405

Effective annual rate = 13.08%

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A thief stole Art's checkbook and forged Art's name as drawer of a check. The drawee paid the check in good faith and sent it to Art with the monthly statement on January 3, 2013. The thief forged other checks during February and March of 2013, which the drawee in good faith paid. All paid checks were sent to Art with monthly statements. On May 25, 2014, Art discovered all of the forgeries and notified the drawee. For which check(s) is Art entitled to be reimbursed

Answers

Based on the explanation given in the scenario, since, the drawee repeatedly followed protocol for every transaction performed, then Art's entitlement to reimbursement would be valid for none of the cheques.

The bank would not be held responsible for carelessness of the drawer and his failure to report vulnerabilities to his/her account.

Since the thief was able to successfully forge Art's signature, then it is imperative that the drawer is paid.

Transaction notification and statement were sent after each transaction and still Art made no report or compliant, hence, the bank would not be liable for any of his losses.

Hence, None of the withdrawals will be reimbursed.

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During 2021, Stork Associates paid $55,800 for a 20-seat skybox at Veterans Stadium for eight professional football games. Regular seats to these games range from $55 to $165 each. At one game, an employee of Stork entertained 18 clients. Stork furnished food and beverages for the event (provided by a local restaurant) at a cost of $3,400. The game was preceded by a bona fide business discussion, and all expenses are adequately substantiated. How much may Stork deduct for this event

Answers

Based on the information given if all the expenses are adequately substantiated. The amount that Stork can deduct for this event is $3,350.

Stock deduction

Costs of seats $3,300

($165x20)

Food and beverage $3,400

Total Entertainment expense $6,700

($3,300+$3,400)

Less 50% Limitation

Deduction $3,350

($6,700×.50)

Inconclusion the amount that Stork can deduct for this event is $3,350.

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The not payable relating to the June 2, and 10 transactions is a five-year note, with interest at the rate of 12 percent annually...

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Du was going on and it was so funny I was just saying that I didn’t

An organization's mission differs from strategic planning in that strategic planning is the basic purpose of the organization
while the mission involves establishing the goals and objectites of the organization.
(A True
B) False

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Answer : true



Explanation:

While some brokers still operate exclusively in person or online, the distinction between the three types has become increasingly

Answers

The practice of brokers transacting business online have been more increasing in recent time.

Brokers refers to individual or a firm acts as intermediaries between the buyer and seller for commission in return when executed.

Typically, the brokers provides various intermediary services in different field. For example, acting as intermediaries for investment, obtaining loan, purchasing real estate, purchasing insurance policy etc

While some brokers provides their services in contact with clients, some brokers provide their services online.

In conclusion, the practice of brokers transacting business online have been more increasing in recent time.

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1. Compute component percentages for Year 2. (Enter your answers as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

Answers

The percentage for the cost of sales is 65.21% in 2015. The percentage for the cost of sales is 65.41% in 2014.

It should be noted that the percentage for the cost of sales in 2015 was calculated as:

= Cost of sales / Net sales

= 36665/56223 = 65.21%

The percentage for the cost of sales in 2014 was calculated as:

= Cost of sales / Net sales

= 34941/53417 = 65.41%

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Ahoy do you need your rate of return to be greater than inflation

Answers

Why is it important for investments to provide a greater return than the rate of inflation?
When inflation levels are stable and moderate, investors have lower expectations of high
market returns. Conversely, expectations rise when inflation is high. When inflation rises,
DO PRICES IN THE ECONOMY, leading investors to require a higher rate of return to maintain
their purchasing power.

Kiwi Airlines has fixed operating costs of $5.8 million, and its variable costs amount to 20 percent of sales revenue. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent. Revenues for the firm are $8 million and the firm is in the 40 percent corporate income tax bracket. What is the firm's degree of financial leverage

Answers

Kiwi Airlines' degree of financial leverage is 1.36.

Data and Calculations:

Fixed operating costs = $5.8 million

Revenue = $8 million

Variable costs = 20% of sales = $1.6 million ($8 x 20%)

Earnings before interest and taxes = $600,000 ($8 - $5.8 - $1.6 million)

Bonds outstanding = $2 million

Coupon interest rate = 8%

Interest expense = $160,000 ($2,000,000 x 8%)

Earnings before taxes = $440,000 ($600,000 - $160,000)

Corporate income tax = 40%

Income Tax Expense = $176,000 ($440,000 x 40%)

Net Income = $264,000 ($440,000 - $176,000)

Degree of financial leverage = earnings before interest and taxes/earnings before taxes

= $600,000/$440,000

= 1.36

Thus, Kiwi Airlines' degree of financial leverage is 1.36.

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