marketing student is estimating the average amount of money that students at a large university spent on sporting events last ye

Answer:

total stockholders' equity = $660000

Explanation:

provided information

Shares issued = 15,000

par value = $0.01 each

issued price = $39.00 each

net profit = $300,000

dividends paid = $15.00 for each share

to calculate

total stockholders' equity

solution

we derive here the common stock value as

common stock = 15,000 × $39

common stock = $585000

and

the amount for dividends is = $15 × 15000

dividends = 225000

thus

total stockholders' equity will be

total stockholders' equity = common stock + net profit - dividends

total stockholders' equity = $585000 + $300,000 - 225000

total stockholders' equity = $660000

The cost advantage of different locations is $20,000. Phoenix appears to have a cost benefit over Atlanta and should be selected for the new facility instead of other options.

The present value of the offer is $739,018.03 The cash flows mentioned, spanning from the end of year 1 to the end of year 20, form a growing annuity for 20 years. The present value formula for a growing annuity is as follows: PV= where P represents the annuity payment in the first year, i is the interest rate per period, g is the growth rate, and n denotes the number of payment periods. The first year’s P is the base salary of $59,000 along with a 10% bonus of $5,900, totaling $64,900; g is 3.9%; i=0.1, and n=20. The present value of the offer equals 15,000 received immediately plus the present value of the growing annuity = 739,018.03.

Answer:

Journal Entry for the partial year's depreciation on July 1, 2023:

Debit Depreciation Expense $7,500

Credit Accumulated Depreciation $7,500

1) When the machine is sold for $45,500 in cash:

Debit Cash $45,500

Debit Accumulated Depreciation $67,500

Credit Gain from Sale of Asset $8,000

Credit Machine Asset $105,000

(2) When the machine is sold for $25,000 in cash

Debit Cash $25,000

Debit Accumulated Depreciation $67,500

Debit Loss from Sale of Asset $12,500

Credit Machine Asset $105,000

Explanation:

Rayya Co. utilizes the straight-line depreciation approach, calculating the yearly Depreciation Expense using the formula:

Annual Depreciation Expense = (Cost of machine − Salvage Value )/Useful Life = ($105,000 - $0)/7 = $15,000

The machine was used for 6 months in 2023 (half a year)

Depreciation Expense = $15,000/2 = $7,500

The journal entry for partial year's depreciation on July 1, 2023 is recorded as follows:

Debit Depreciation Expense $7,500

Credit Accumulated Depreciation $7,500

By July 1, 2023, the total Accumulated Depreciation amounts to = $15,000 x 4 + $7,500 = $67,500

Carrying value of the machine = $105,000 - $67,500 = $37,500

(1) If the machine is sold for $45,500 cash:

Calculation of Sale Price minus Carrying Value = $45,500 - $37,500 = $8,000>0

=> Therefore, the company acknowledges a gain of $8,000 on the sale

Debit Cash $45,500

Debit Accumulated Depreciation $67,500

Credit Gain from Sale of Asset $8,000

Credit Machine Asset $105,000

(2) If the machine is sold for $25,000 cash

Calculation of Sale Price minus Carrying Value = $25,000 - $37,500 = -$12,500<0

=> Thus, the company records a loss of $12,500 on the sale

The entry needed is as follows:  

Debit Cash $25,000

Debit Accumulated Depreciation $67,500

Debit Loss from Sale of Asset $12,500

Credit Machine Asset $105,000