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Lynn,

Yes, you would definitely need to restate your common stock account on the balance sheet to adjust for the reverse stock split.
So if you originally had 100 million shares presplit and you...

TXGriff,

Thank you for the response, I appreciate it.

Is there any literature that you could point me to, for support?


Regards,
Herman

My company has had a security deposit on the books as "Restricted Cash" for rented office space.
We have come to an arrangement with our landlord and are terminating the lease for that space and...

Maggie, Thank you

Would you have any reference or source you could point me to??

Thank you in advance, Herman

I work at a small biotech company.
Occasionally we license compounds from other companies and then spend our time and money developing the compounds to hopefully be a drug approved by the FDA...

You are absolutely correct.
Dr Cash $70,000
Cr Common Stock $1 par value $50,000
Cr Additional Paid in Capital (APIC) $20,000

500+200+900+749+105+400+250+500+350+100= 4054

Cash in

Sales from April 75000*.4 = 30000
Sales from May 180000*.6 = 108000

Total in 138000

Cash out
Operating expenses -105000
Capital spend ...

Present Value calculation

$2.00/1.11 = 1.80

$2.20/ 1.11/1.11 = 1.79

$2.40/ 1.11 /1.11 /1.11 = 1.75

$33/ 1.11/1.11/1.11= 24.12

$2.00/1.11 = 1.80

$2.20/ 1.11/1.11 = 1.79

$2.40/ 1.11 /1.11 /1.11 = 1.75

$33/ 1.11/1.11/1.11= 24.12

1.80+1.79+1.75+24.12 = $29.46

6 months at 52,800
4 months at 68,800
2 months at 64,000

weighted average = (6*52.8+4*68.8+2*64)/12= 60,000

I'll jump in here with my thoughts.
No vendor that bills in Euros is going to buy your argument, and if you send them $136,000 they will probably reinvoice you some difference.
They want to be...

An accountant makes a journal entry to adjust items on the books, could be to P&L, could be to Balance Sheet or combination of both. The accountant is just saying that he will record a plus and a...

a. I agree
b. The split in 2007 is after the split in 2006, so I would use 3.12/3/2 = .52
c. I would use 3.12/1.1 = 2.84

Opening retained earnings should be $60,000

A =L + E
350000=80000+210000+x

x = 60000

A loss would be a reduction in retained earnings, not an addition.
Similarly, dividends reduce equity, they do not increase equity

Herman

A. Your answer to A is correct 5% of 600 shares is 30 shares.

I think you have it backward, the adjusting journal entry is for a note payable.
I would Dr Interest expense (an account on the P&L)
And would CR Accrued interest payable (a Bal Sheet account)
...

First try calculating current ratio, acid-test ratio, working capital, inventory turnover ratio, and accounts receivable turnover ratio. Then you can come back and ask questions.

It is very common for a growing company to show great profitability but to be in a negative cash flow position. A company that is growing rapidly will need to make a lot more inventory (or purchase...

No, accumulated depreciation account is a balance sheet account and is not closed to retained earnings

Dr Treasury Stock
Cr. Cash

Definitely not a current asset

Do you have a typo in your question?
How can the risk-free rate be 15.51% if the expected return on the market is 12.8%?
Herman

You have no idea what you are talking about.
What a joke.
The reverse stock split will definitely increase the stock price.
However the par value will remain unchanged.
That is causing the...

Rich,

Thank you for taking the time to respond.

Perhaps if I rephrase my question, you will see my dilemma
One fact I would like to reiterate is that there is no change in par value with this...

Do not agree, if I do not make an entry then I will have 33,333,333 shares par value of .001 but the amount in the account will be $100,000.00
I feel I have to make an entry within Shareholders...

My company is doing a reverse stock split, no change on par value

Originally we have 100 million shares at a par value of $.001 for an amount on General Ledger of $100,000.00

We are doing 1 for...

Anyone?

I appreciate your patience, but now I do not follow you.
Let me try again so you can see my conundrum

September 2006
Dr P&L account $300k cr AP $300k for cancellation fee for 3 separate runs of...

Captain,
The more I think about this, the more circular it gets.
If I go ahead with this entry, Dr> A/P, Cr P&L, I will now have inventory on my books for which I have not paid anything for, yet...

That's what I would do. If the homework assignment did not provide a chart of accounts or any other information I would put it to "General administrative expense" or something like that. Promotion...

You need to study the chapter a little bit more.
In answer to your question, you would need to write journal entries for the following;
3.
5.
6.

The other items listed would affect your bank...

You can issue stock for all sorts of expenses, for instance research and development, selling, consulting, even accounting.
Then your entry is
Dr> appropriate P&L account
Cr> Common Stock for par...

Thank you for your response.
Net of your entries is Dr. AP, Cr P&L, I will proceed

Cheers

Profit = (Price - Average variable cost) * quantity - fixed cost

In 2006, we committed to a vendor to make some product for us.
We subsequently had to cancel the orders and paid the vendor a cancellation fee
Dr P&L Cr Accts Payable this fee was then...