Prepare the general journal entry

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Reference no: EM132016356

1. Company sold $1,500 worth of goods and received immediate payment (the cost of goods sold was $1,200). Prepare the general journal entry.

A) DEBIT: Revenue for $1,500; CREDIT: Cash for $1,500

DEBIT: Cost of Goods Sold for $1,200; CREDIT: Inventory for $1,200

B) DEBIT: Revenue for $1,500; CREDIT: Cash for $1,500

DEBIT: Inventory for $1,200; CREDIT: Cost of Goods Sold for $1,200

C) DEBIT: Cash for $1,500; CREDIT: Revenue for $1,500

DEBIT: Inventory for $1,200; CREDIT: Cost of Goods Sold for $1,200

D) DEBIT: Cash for $1,500; CREDIT: Revenue for $1,500

DEBIT: Cost of Goods Sold for $1,200; CREDIT: Inventory for $1,200

2. Staton-Smith Software is a new start-up company and will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of $4.75 with a constant growth rate of 4 %, with the first dividend at the end of year six. The company will be in business for 25 years total. What is the stock's price if an investor wants

a. a return of 12 %

b. a return of 13 %

c. a return of 24 %

d. a return of 35 %

Reference no: EM132016356

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