Olsson Corporation received a check from its underwriters for $85 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $85 per share. Which is the correct entry to record the issue of the stock?

Cash (Dr.)                $85,000,000

       Share Capital (Cr.)                        $5,000,000

       Share Premium (Cr.)                   $85,000,000

Explanation:

The par value is simply the face value that appears on the certificate of share deposited with the depository system. When multiplied with the number of shares issued, it gives us Share Capital which in this case is $5,000,000 (5 * 1,000,000). But Olsson Corporation issued these shares at $85,000,000, this excess amount of $80,000,000 (85,000,000 - 5,000,000) is Share Premium. The appropriate entry to record the issue is:

Cash (Dr.)                $85,000,000

       Share Capital (Cr.)                        $5,000,000

       Share Premium (Cr.)                   $85,000,000

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi