during 2022, jacob, a 19-year-old full-time student, earned $4,500 during the year and was not eligible to participate in an employer-sponsored retirement plan. the general limit for deductible contributions to an ira during 2022 is $6,000. how much of a tax-deductible contribution can jacob make to an ira?.
Answers
Tax deductible contributions are limited to the lesser of $5,500 or the amount of earned income.
Can I deduct Roth IRA contributions?You can not deduct contributions to a Roth IRA. However, the withdrawals you make for the duration of retirement can be tax-free. They must be qualified distributions. You can withdraw contributions at any time except tax or penalty.
How an awful lot will my taxes be reduced if I make a contribution to an IRA?Traditional IRA contributions can keep you a respectable amount of cash on your taxes. If you are in the 24% profits tax bracket, for instance, a $6,500 contribution to an IRA would equal a little greater than $1,500 off your tax bill.
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analyse the impact of an enterprise using break even analysis to make business decisions
Answers
Answer:
Using break-even analysis in your feed and grain business can help you understand and examine the profit drivers of your business. It is a very useful tool that can help you understand how much you need to sell to cover your costs and how pricing, cost, and volume changes impact these needed sales.
The movement of parts from one area of the factory to another is considered a value-added activity whereas the storage of raw materials is considered a non-value activity.
Answers
Answer:
TRUE
Explanation:
Value can be defined as the thing for which an customer is willing to pay the price. It is the activity on any shop floor or business for delivering the product or service to the customer for which the customer is ready to pay the price for it.
If the customers does not wish to pay the price, then there is no value.
So inside a factory, in a shop floor, moving a part from one place to another for making a product that the customer is willing to pay is a value added activity. But excess movement or transportation of product does not any value to it, it is then considered as a waste.
Also storing of products is a non value activity as storing a product will not help the customer in any way and a customer will not pay for a product when it is stored and is of no use to the customer.
2) How is the internet most commonly used by consumers?
A) electronic banking
B) online shopping
C) selling a house
D) printing contracts
Answers
Answer: B
Explanation:
B) Online shopping is the most common use of the internet by consumers. With the growth of e-commerce platforms and the convenience of online shopping, more and more consumers are using the internet to purchase products and services. Electronic banking is also a common use of the internet by consumers, but it comes in second after online shopping. Selling a house and printing contracts are less common uses of the internet by consumers, as these activities typically require more specialized tools and knowledge beyond just accessing the internet.
Q9. WE Company has completed all operating budgets other than the income statement for 2024. Selected data from these budgets follow.
Sales: $350,000
Purchases of raw materials: $145,000
Ending inventory of raw materials: $15,000
Direct labor: $40,000; Manufacturing overhead: $73,000, including $3,000 of depreciation expense
Selling and administrative expenses: $36,000 including depreciation expense of $1,000; Interest expense: $1,000
Principal payment on note: $2,000; Dividends declared: $2,000 and Income tax rate: 30%
Other information:
Assume that the number of units produced equals the number sold.
Year-end accounts receivable: 4% of 2024 sales.
Year-end accounts payable: 50% of ending inventory of raw materials.
Interest, direct labor, manufacturing overhead, and selling and administrative expenses other than depreciation are paid as incurred.
Dividends declared and income taxes for 2014 will not be paid until 2015.
Instructions
(a) Calculate budgeted cost of goods sold.
(b) Prepare a budgeted income statement for the year ending December 31, 2014.
(c) Prepare a budgeted balance sheet as of December 31, 2014
Answers
Answer:
(a) To calculate the budgeted cost of goods sold, we need to use the following formula:
Beginning Inventory of Raw Materials + Purchases of Raw Materials - Ending Inventory of Raw Materials + Direct Labor + Manufacturing Overhead = Total Manufacturing Costs
$0 (assuming no beginning inventory of raw materials) + $145,000 - $15,000 + $40,000 + $73,000 = $243,000
Then, we can use the following formula to calculate the budgeted cost of goods sold:
Total Manufacturing Costs + Beginning Finished Goods Inventory - Ending Finished Goods Inventory = Cost of Goods Sold
$243,000 + $0 - $0 = $243,000
Therefore, the budgeted cost of goods sold is $243,000.
(b) Using the information above, we can prepare a budgeted income statement for the year ending December 31, 2014 as follows:
WE Company
Budgeted Income Statement
For the Year Ending December 31, 2014
Sales $350,000
Cost of Goods Sold $243,000
Gross Profit $107,000
Selling and Administrative Expenses $36,000
Depreciation $1,000
Interest Expense $1,000
Income before Taxes $69,000
Income Tax Expense $20,700
Net Income $48,300
(c) Using the information above, we can prepare a budgeted balance sheet as of December 31, 2014 as follows:
WE Company
Budgeted Balance Sheet
As of December 31, 2014
Assets
Cash TBD
Accounts Receivable TBD
Inventory of Raw Materials $15,000
Finished Goods Inventory TBD
Total Assets TBD
Liabilities and Stockholders' Equity
Accounts Payable TBD
Note Payable TBD
Stockholders' Equity TBD
Total Liabilities and Stockholders' Equity TBD
To complete the budgeted balance sheet, we need additional information such as the amount of cash, accounts receivable, finished goods inventory, note payable, and stockholders' equity.
prepare an essay comparing and contrasting a 4-p (price, product, place and promotion) approach to marketing versus the value approach (creating, communicating, and delivering value). what would you expect to be the same and what would you expect to be different between two companies who apply one or the other approach?
Answers
The four Ps approach is a conventional strategy that has a hazy understanding of the purpose of marketing. Simply said, terms like "Product," "Promotion," "Place," and "Price" don't adequately represent what the discipline of marketing does.
What is the marketing mix?Product, pricing, place, and promotion have historically been the four main components of the "marketing mix," which is a foundational business strategy. As a group of marketing instruments used by the company to accomplish its marketing goals in the target market, the marketing mix has been established. These terms undoubtedly have meanings related to the area, but it does not suffice to place them at the forefront of everything. The value strategy, on the other hand, goes further than the 4 Ps method (producing, communicating, providing, and exchanging). It's as though the four P's approach is contained in the value approach.
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What is the difference between marginal cost and marginal revenue?
a) Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good.
b) Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good.
c) Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit.
d) Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.
Answers
How important do you think focus groups are to the eventual success of a new product?
Answers
Answer:
Yes
Explanation:
Focus groups help businesses learn what their customers think, enabling strategic decision-making focused on their target market's true wants and needs
distinguish between client-imposed scope limitations and circumstance-imposed scope limitations. which of these scope limitations is generally of more concern to auditors?
Answers
Client-imposed scope limitations are limitations that are imposed by the client themselves. These limitations can be caused by several factors such as a lack of cooperation from the client, a restricted access to information, or the client's refusal to allow the auditor to perform certain procedures.
On the other hand, circumstance-imposed scope limitations are limitations that are beyond the client's control, such as natural disasters, unexpected events, or legal or regulatory restrictions.
Generally, client-imposed scope limitations are of more concern to auditors. This is because they can indicate a lack of transparency and may signal potential issues or areas of concern that the client is trying to hide. In contrast, circumstance-imposed scope limitations are typically beyond the control of the client, and the auditor may be able to work around them or adjust their procedures accordingly.
Nevertheless, both types of limitations should be considered and addressed appropriately by the auditor to ensure the integrity and reliability of the audit report.
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Client-imposed scope limitations are limitations that are placed by the client on the scope of an audit, either by restricting access to information, limiting the audit procedures to be performed, or setting boundaries on the period covered by the audit.
Circumstance-imposed scope limitations, on the other hand, are limitations that are beyond the control of the client, such as natural disasters, lawsuits, or bankruptcy.
Client-imposed scope limitations are generally of more concern to auditors, as they may limit the auditor's ability to obtain sufficient and appropriate audit evidence to support the financial statements. Auditors are required to communicate any scope limitations to the users of the financial statements in the auditor's report, which could affect the reliability and credibility of the financial statements. Circumstance-imposed scope limitations are typically more easily understood and explained to users of the financial statements, and may be considered as mitigating factors in the auditor's report.
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During the period, a company reports Sales of $48,000, Cost of Goods Sold of $28,000, and Income of $2,500. Profit margin is:
Answers
The period wherein an organization's income is $48,000, the price of a suitable offer is $28,000, and earnings are $2,500, so the earnings margin of the employer is $17,500.
What is the profit margin?Profit margin is one of the generally used profitability ratios to gauge the degree to which an employer or a commercial enterprise makes money.
It represents how much of the income has been profits. Simply put, the proportion parent shows how many cents of earnings the business generated for every dollar of sales.
For example, if a company reports that it completed a 35% earnings margin in the previous quarter, it means that it earned $0.35 for every dollar of revenue generated.
In ordinary use, however, it normally refers to internet earnings margin, an employer’s bottom line in spite of all different expenses, inclusive of taxes and one-off oddities, that were taken out of revenue.
There are 4 ranges of earnings or earnings margins: gross earnings, working earnings, pre-tax earnings, and internet earnings.
These are contemplated in an employer's earnings announcement within the following sequence: An employer takes in income revenue, then pays direct charges for the manufactured service.
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Answer:
5.2%
Explanation:
__ denotes the dollar amount a consumer would attach to a good or service. a. economic contribution b. utility c. consumer surplus d. value
Answers
The term that denotes the dollar amount a consumer would attach to a good or service is called "value". The Option d. Value denotes the dollar amount a consumer would attach to a good or service.
Value refers to the importance, worth, or usefulness of a good or service. When customers exchange money for a product or service, the money represents the value of the product to the buyer, but it also represents the value of the money to the seller. The value is assigned by the consumer or the buyer of a product or service, it differs from person to person as the value of the product is subjective. The price, on the other hand, refers to the number of monetary units (dollars, euros, pesos, etc.) that the producer receives for each unit of the product sold.
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When British regulators were forced to suspend the license of a flu vaccine plant in Liverpool operated by the Chiron Corporation due to concerns over bacterial contamination. As a result, the number of flu vaccines available in the United States market decreased by 48 million doses. This was nearly half of the total supply of vaccines in the market. A. Shift the appropriate curve or curves to show this dramatic change in the market for flu vaccines. Market for flu vaccines S D b. As a result of the decline in available flu vaccines, the equilibrium price should , and the equilibrium quantity should
Answers
(a) As a result of suspending license of vaccine plant, the supply of flu vaccines will decrease. Thus, the supply curve will shift to the left (shift the blue curve to the left)
What are the equilibrium quantity and price?The price at which consumer and producer plans coincide, i.e., when quantity sought by consumers equals quantity provided by producers, is known as equilibrium pricing. Any market's equilibrium price is the one at which supply and demand are equal. When a product is in equilibrium amount, there is neither a shortage nor an overabundance of it on the market. When supply and demand are in balance, the quantity of a good that consumers want to purchase is equal to the quantity that its suppliers are supplying.
(b) Thus, the equilibrium price should increase and the equilibrium quantity should decrease.
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The complete question is attached below:
Economic importance
of
rivers
Answers
Answer:
Traditionally, rivers have been valued primarily as water sources to drive the economic engines of irrigation and hydropower. However, rivers provide a broader set of services that deliver immense benefits to people, economies and nature, which include, but exceed, the value of the water they carry.
Explanation:
How Social Media can Destroy Your Finances
Answers
Answer:
You buy unnecessary items that have no purpose later on, or you buy an over expensive item that you cant seem to pay back later on in other circumstances
Paul just graduated from college and landed his first "real" job, which pays $33 comma 000 a year. In 10 years, what will he need to earn to maintain the same purchasing power if inflation averages 3 percent? Click on the table icon to view the FVIF table LOADING... . The future value, FV, Paul will need to earn if inflation averages 3 percent is $nothing . (Round to the nearest cent.)
Answers
Paul needs to earn $46,601.4 in 10 years to maintain the same purchasing power if inflation averages 3%. This can be calculated using the formula for future value with inflation adjusted for a certain number of years.
it's important to understand the effects of inflation on purchasing power over time. Inflation refers to the general increase in prices of goods and services in an economy over a period of time. This means that, over time, the same amount of money will be able to purchase fewer goods and services.
In Paul's case, if inflation averages 3 percent over the next 10 years, he will need to earn more than $33,000 per year in order to maintain his purchasing power. This can be calculated by using a future value formula, which takes into account the current value of money, the inflation rate, and the length of time over which the inflation will occur.
By considering inflation in his financial planning, Paul can better prepare for the future and make sure he's able to maintain his standard of living, even as prices rise over time. So, it's important to keep an eye on inflation rates and plan accordingly.
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Nicolas loves watching The Simpsons on his local public TV station, but he never sends any money to support the station during its fundraising drives.
a. What name do economists have for people like Charlie? Explain.
b. How can the government solve the problem caused by people like Charlie?
c. Can you think of ways the private market can solve this problem? How does the existence of cable TV alter the situation?
Answers
Economists refer to people like Nicolas, who watch public TV but don't make any contribution to the collections, like as "free riders."
What are Free Riders?Free riders are people who benefit from a public good or service without contributing to its cost. In this case, Nicolas is enjoying the programming on his local public TV station without sending any money to support the station during its fundraising drives.
Government and free ridersOne way the government can solve the problem caused by free riders like Nicolas is by implementing a tax or fee that everyone must pay in order to access the public good or service.
This ensures that everyone who benefits from the public good or service contributes to its cost. Another way the government can solve this problem is by making the public good or service a private good or service, meaning that only those who pay for it can access it.
Private market and cable TV
The private market can solve this problem by offering alternative goods or services that are similar to the public good or service, but require payment in order to access them.
For example, cable TV offers similar programming to local public TV stations, but requires a monthly subscription fee in order to access it. This creates an incentive for individuals to pay for the private good or service instead of relying on the public good or service without contributing to its cost.
The existence of cable TV can also create competition for the local public TV station, potentially encouraging the station to offer better programming or lower prices in order to attract viewers and support.
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After a job interview, you should _____.
A. Celebrate
Write a thank you letter
call the interviewer immediately to see if you got the job
call your friend to tell them about the interview
Answers
Answer:
I think that after a job interview you should call your friend and tell them about the interview you should not celebrate because you don't know if you've gotten the job and if you call your friend they might give you hope on getting the job
HELP!! ACCOUNTING
What is the correct order of the steps for
adjusting entries?
O A. Journalize adjusting entries. Post
adjusting entries. Gather relevant
information.
O B. Journalize adjusting entries. Gather
relevant information. Post adjusting
entries.
O C. Gather relevant information.
Journalize adjusting entries. Post
adjusting entries.
O D. Gather relevant information. Post adjusting entries. Journalize adjusting entries.
Answers
C. Gather relevant information Journalize adjusting entries. Post
adjusting entries is the correct order of the steps for adjusting entries.
What are adjusting entries?
Adjusting entries are modifications to previously written entries in your diary. They specifically check that the data you have recorded corresponds to the appropriate accounting periods.
Journal entries keep track of how money flows into, out of, and between various accounts in your business.
Making an adjustment entry ensures that the operations of your company are accurately and timely recorded. Your records will show you paying for expenses before they are actually incurred or collecting unearned earnings before you can use the money if you don't make adjustment entries.
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I want to become doctor and I'm from nepal..which may be the best country for me to study
Answers
Answer:
the best would always be the USA in doctoring.
it has the best colleges etc.
Explanation:
which of the following best describes a deliverable? a tangible or intangible output or outcome that is a unique product, service, or result but does not require production a tangible or intangible output that is any unique product, service, or capability to perform a service that is required to be produced to complete a process, phase, or project an outcome towards which work is directed none of the above
Answers
A deliverable can be defined as a tangible or intangible output that is any unique product, service, or capability to perform a service that is required to be produced to complete a process, phase, or project.
What is a deliverable?This is the term that is used to refer to the tangible or the intangible goods that are to be delivered to a customers by the producers or the sellers of such products. This could be in terms of a software or a document that is to be delivered.
Hence we can say that a deliverable can be defined as a tangible or intangible output that is any unique product, service, or capability to perform a service that is required to be produced to complete a process, phase, or project.
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suppose you buy a share for $100. at the end of one year the share price is $114 and a $1 dividend is paid. if you do not sell the share, your total annual return is . multiple choice question. 1% 15% 14% 0.93%
Answers
Suppose you buy a share of stock for $100. At the end of one year, the stock price is $114 and a $1 dividend is paid. If you do not sell the stock, your total annual return is 15%.
(1/100) + ((114-100)/100) = 15%
Shares, also known as stocks, are securities that represent partial ownership of the issuing company. A unit of stock is called a "share" and entitles the owner to a portion of the company's assets and profits equal to the shares held by the owner. Equity means a share of ownership in a company.
An example stock is 100 shares of Disney Corporation stock. Buying stock usually requires the help of a stockbroker, as you cannot call the exchange and ask them to buy the stock directly. When you use a stockbroker, whether it's a human or an online platform, you can choose which investments to buy or sell and how to trade them.
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In order to reduce the possibility that a technological paradigm shift will render your skills obsolete, you should
a. Encourage others to keep their skill sets current
b. Try to keep your company from adopting new technology
C. Keep tabs on the newest technical advances
d. Adopt a technology proof career, like carpentry
Answers
Answer:
a. Encourage others to keep their skill sets current
b. Try to keep your company from adopting new technology
Explanation:
Continuous updating and upgrading one's skills is a sure way of remaining relevant in a rapidly changing work environment. Many organizations are always seeking ways of modernizing their work processes. As companies adopt technology to enjoy increased efficiency, workers without matching skills are declared redundant.
Continuous training and learning are necessary to reduce the possibility of one's skill being declared obsolete. To survive in the new technology era, a worker and his colleagues can embrace and learn to work with new technology or work hard to prevent their company from acquiring it.
Answer:
c.
Keep tabs on the newest technical advances
Explanation: CORRECT ON EDGE 2021
47. Indian economy is a mixed economy as it consists of both privately owned and
government owned business enterprises. Therefore, we can classify the Indian economy
into two sectors, viz, Private Sector and Public Sector. In a capitalistic economy, the
private sector is dominating, while in a socialistic economy, the public sector is
dominating. In a mixed economy, both the private sector and public sector go hand in
hand.
. In the light of the above paragraph explain Indian economy?
Answers
Yes, the Indian economy is a mixed economy which consists of two sectors viz, Private Sector and Public Sector.
What is the Indian economy?The economy of India is a mixed middle-income developing social market economy. It is the world's fifth-largest economy by nominal GDP and third-largest economy by purchasing power parity.The essential characteristics of developing economies are overpopulation, extreme poverty or below the poverty line, poor infrastructure, agriculture-based economies, slow pace of capital development, and low per capita income.The Indian economy is characterized by a low real per capita income rate, a high population growth rate, and a high degree of dependence on the primary industry. Covid 19 has had a negative impact on the Indian economy. The Covid pandemic has led to industry shutdowns and subsequent job losses.An economy is a system of interconnected production and consumption activities that ultimately determine the allocation of resources within a group. The production and consumption of goods and services as a whole meet the needs of the people who live and work there.to know more about the Indian economy refer to
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The price of mangoes is currently $5.00 per pound. At this price, producers are supplying 4,000 pounds of mangoes. Point C on the graph shows the current equilibrium price and quantity. To which point will the equilibrium shift if the demand increases suddenly because of a non-price determinan
t of demand?
Answers
Answer:
yes
Explanation:
Answer:
Point "B"
Explanation:
The following rule of thumb is to follow your equilibrium point. D2 "Demand Curve 2" and S1 "Supply Curve 1" illustrates how demand increases because of a non-price determinant.
why teacher want me to take exam
Answers
Answer:
dont know but our state dodge it because we had power and water out so we have about 2 weeks till then i think i know fo sure its in march tho
Explanation:
A stigmatized property is one: (a) Where physical damage makes it undesirable to buyers (b) That a historical society owns and maintains (c) Where a particular event has affected the desirability of the property (d) None of these are correct
Answers
Answer:
(C) Where a particular event has affected the desirability of the property
Explanation:
A stigmatized property is one that has been psychologically impacted by an event that occurred on the property or one that has been suspected to have occurred on that property. Such a property is now "stigmatized" because such an event will have a drastic effect on multiple values and aspects of the property.
PLEASE HELP! you get 20 points
Alfonso comes to you for advice on creating a web application for his new startup, a store that turns discarded clothes into quilts for sale. He’s a novice when it comes to these things, so he asks you to give him advice on what kinds of functions would be useful for the application, as well as why an app is useful beyond providing a digital store front. In a paragraph, summarize your advice to Alfonso.
Answers
Answer:
i need help with this too someone please help
Explanation:
Answer:
An app would be important because you could track your orders easier and you would be able to promote the product. THe main function would need to be the ability to manage a business while trying to get all of the product made while finding people to be part of your business. IF you are going to interview employees they would have to know how to stitch and sew.
Explanation:
TRUST ME ON THIS ONE
When a company determines the most likely people to buy its product are 20-27 year old middle class women, it is
finding its
Answers
When a company determines that a group of people of certain age range and gender will likely buy its product, it is finding its: potential customers/market target.
Every product has a specific group of people that share similar characteristics that it can meet their needs. The unique needs of that group of people is what companies and producers focus on to exploit in creating product and marketing strategy for.
Such unique group of people constitute the market target or potential customers for such product.
Therefore, when a company determines that a group of people of certain age range and gender will likely buy its product, it is finding its potential customers/market target.
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the annual rate intrest rate of Chucks savings account is 4.8% and simple intrest is calculated monthly what is the periodic intrest rate of chucks account
Answers
The periodic interest rate of chucks account is 0.4%. Thus the correct option is B.
What is the interest rate?An interest rate refers to an amount charged by a financial institution or bank when they provide money to an individual. This amount is charged on a fixed rate called the interest rate.
As simple interest is charged monthly, there will be 12 estimates of interest in a year.
In the given case, the Annual interest rate is 4.8%
So, the periodic interest rate = Annual interest rate /12
=4.8/12
= 0.4 %
Therefore, option B is appropriate.
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The complete question is
The annual interest rate of Chuck's savings account is 4.8%, and simple
interest is calculated monthly. What is the periodic interest rate of Chuck's
account?
A. 0.8%
OB. 0.4%
C. 1.2%
o
D. 2.4%
SUBMIT
Periodic interest rate of Chuck's account is 0.4%.
How to find interest rate?The periodic interest rate of Chuck's savings account is calculated by dividing the annual interest rate by the number of months in a year.
Convert the annual interest rate to a decimal: 4.8% = 0.048.Divide the annual interest rate by 12 (number of months in a year): 0.048 ÷ 12 = 0.00.Convert the periodic interest rate to a percentage: 0.004 × 100 = 0.4%Therefore, the periodic interest rate of Chuck's account is 0.4%.
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The definition of states: The process of solving the everyday problems that occur. It is less formal than decision making and usually calls for quicker action.
Answers
Answer:
What is the question?
Explanation:
E16-4. On January 1.2013, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1000 bond to convert the bond into five shares of the coporation's common stock. The debentures were issued for $10,800,000. The present value of the bond payments at the time of issuance was $8,500,000, and the corporation believe the differnece between the present value and the amount paid is attributable to the conversion feature. On January 1, 2014, the corporation's $30 par value common stock was split 2 for 1, and conversion rate for the bonds was adjusted accordingly. On January 1, 2015, when the corporation's $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses a straight line method for amortizating any discounts or premiums.Instructions(a) Prepare in general journal form the entry to record the original issuance of the convertible debentures(b) Prepare in general journal form the entry to record the exercise of the conversion option, using the book value method. Show supporting computation in good form.
Answers
Answer:
A. Dr Cash Account $10,800,000
Cr To Bonds Payable $10,000,000
Cr To Premium Payable $800,000
B.Dr Bonds Payable account $3,000,000
Dr Premium on bonds payable Debited $2,700,000
Cr To Common Stock $7,500
Cr Additional paid in capital $5,692,500
Explanation:
(a) Preparation of the journal entry to record the original issuance of the convertible debentures
Dr Cash Account $10,800,000
Cr To Bonds Payable $10,000,000
Cr To Premium Payable $800,000
($10,000,000*8/100=$800,000)
(Being issue of share on convertible debenture)
b.Preparation of the journal entry to record the exercise of the conversion option, using the book value method
Dr Bonds Payable account $3,000,000
Dr Premium on bonds payable Debited $2,700,000
Cr To Common Stock $7,500
Cr Additional paid in capital$5,692,500
($3,000,000+$2,700,000-$7,500)
(Being maintain the record of outstanding conversation of debenture)
Calculation for for BONDS CONVERTED
First step is to calculate the amortization for 2013
Amortization for 2013=$10,000,000/20
Amortization for 2013=$500,000
Second step is to calculate the amortization for 2014
Amortization for 2014=$10,000,000/20
Amortization for 2014=$500,000
Third step is to Calculate the premium on bonds payable
Premium on bonds payable=$10,000,000−($500,000+$500,000)
Premium on bonds payable=$9,000,000
Now let calculate the bonds converted
Bonds converted=$9,000,000×30/100
Bonds converted=$2,700,000
Calculation for COMMON STOCK
First step is to calculate the number of bonds
Number of bonds=$10,000,000/1000
Number of bonds=10,000
Second step is to calculate Price for the bond
Price for the bond=10,000×5
Price for the bond=50,000
Third step is to Calculate for Stock Split
Stock Split=50,000/2
Stock Split=25,000
Now let calculate the common stock
Common stock=25,000×30/100
Common stock=7,500
Calculation for BONDS PAYABLE
Bonds Payable=10,000,000×30/100
Bonds Payable=3,000,000
Answer:
my own answer is 7500x30=225000