Reference no: EM133157717
Question - Santana Rey created Business Solutions on October 1, 2021. The company has been successful, and Santana plans to expand her business. She believes that an additional $116,000 is needed and is investigating three funding sources.
a. Santana's sister Cicely is willing to invest $116,000 in the business as a common shareholder. Because Santana currently has about $174,000 invested in the business, Cicely's investment will mean that Santana will maintain about 60% ownership and Cicely will have 40% ownership of Business Solutions.
b. Santana's uncle Marcello is willing to invest $116,000 in the business as a preferred shareholder. Marcello would purchase 1,160 shares of $100 par value, 9% preferred stock.
c. Santana's banker is willing to lend her $116,000 on a 9%, 10-year note payable. She would make monthly payments of $1,469 for 10 years.
Required - Prepare the journal entry to reflect the initial $116,000 investment under each of the options a, b, and c.
|
Calculate the dividends per share on each class of stock
: Lightfoot Inc., a software development firm, has stock outstanding as follows: 25,000 shares of cumulative preferred 2% stock, Calculate the dividends per share
|
|
Calculate the allocation rates for each cost pool
: Calculate the allocation rates for each cost pool and cost driver. Interpret the allocation rate for each cost pool (i.e., explain what it means)
|
|
Calculations of profits as sales output changes
: Calculations of profits as sales output changes, calculations of a performance measure (return on assets), and of bonuses based on performance
|
|
Determine how the level of materiality is assessed
: The draft financial statements show revenue of $32.2 million, receivables of $6.1 million. Determine how the level of materiality is assessed
|
|
Prepare the journal entry to reflect the initial investment
: Santana's banker is willing to lend her $116,000 on a 9%, 10-year note payable. Prepare the journal entry to reflect the initial investment
|
|
Why is quality management so important
: Question - Why is quality management so important for most industries today, and how do firms use it as a competitive advantage
|
|
What is the transfer price
: If Canvas Co. uses an internal transfer price policy of transfer prices are 180% of variable costs, what is the transfer price
|
|
Compute the retained earnings balance at december
: Presented below is information related to Crane Company at December 31, 2020, Compute the Retained earnings balance at December
|
|
Calculate each projects payback period and net present value
: Calculate each projects payback period, net present value (NPV), internal rateof return (IRR), and modified internal rate of return
|