User Account

All Pages

What will be the net increase in OCC preferred share

Assignment Help Accounting Basics
Reference no: EM132565683

Question - Our Chris Corp. (OCC) issued 5,000 Series 2 preferred shares to a car dealer in exchange for two delivery trucks with a collective fair value of $123,000. At the date of issue, OCC's shares were trading on the stock market at $24.90 each. The directly attributable costs of issuing the shares totaled $2,000, which was accounted for using the retained earnings method. What will be the net increase in OCC's preferred share account due to this transaction?

a. $121,000

b. $124,500

c. $123,000

d. $122,500

Reference no: EM132565683

Questions Cloud

Report on cultural globalization : Given the pros and cons, what is your overall assessment of this aspect of cultural globalization? Does the good outweigh the bad in your opinion
What amount should be credited to common shares : On January 1, 20X5, Aria Inc. issued 20,000 convertible preferred shares for $960,000. What amount should be credited to common shares on September 26, 20X6
Provide journal entry for bond issuance and interest payment : Provide the journal entry for bond issuance and interest payment under each of the issue price is $1000 and issue price is $1120.
Processes and analyses for computer crime : The state crime lab has contracted AB Investigative Services (ABIS) to prepare a forensic plan to ensure that current problems
What will be the net increase in OCC preferred share : OCC's shares were trading on the stock market at $24.90 each. What will be the net increase in OCC's preferred share account due to this transaction
How to compute after-tax cost of capital to dayton for bonds : The Dayton Corporation is considering a new investment, Compute the after-tax cost of capital to Dayton for bonds, assuming a 34% tax rate. Show work.
Find what should be the issue price of bonds payable : Find what should be the issue price of Bonds payable under these there situations? also provide journal entry on the issuance of bonds under each situation.
What is total balance in Darnell contributed surplus account : What is the total balance in Darnell's contributed surplus accounts immediately after these transactions are recorded
How to compute the cost of capital of the stock to firm : How to Compute the cost of capital of the stock to firm. Show all work? The dividend rate is 12%, and the par value of the stock is $100.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd