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otez555 [7]
2 years ago
15

ma Rich purchased 100 shares of Stockits, Inc.'s $1 par value common stock from Stockits for $5 per share. Which statements are

true regarding the effect of this transaction on Stockits' financial statements? (Select all that apply.) Multiple select question. A gain on will be reported on the income statement. Stockholders' equity on the balance sheet increases. The investing activities section of the statement of cash flows increases. The financing activities section of the statement of cash flows increases. Stockholders' equity on the balance sheet decreases.
Business
1 answer:
vivado [14]2 years ago
4 0

The correct options for Which statements are true regarding the effect of this transaction on Stockits' financial statements are B. Stockholders' equity on the balance sheet increases. C. The financing activities section of the statement of cash flows increases.

Equity is something invested in the company by using its owner or the sum of the entire belongings minus the sum of the company's general liabilities. E.g., common stock, additional paid-in capital, favored inventory, retained income, and the amassed different complete earnings.

For most companies, high stockholders' equity shows more stable finances and greater flexibility in case of an economic or financial downturn. information stockholders' equity is one way that buyers can learn about the monetary health of a firm.

Your question is incomplete. Please read below for the missing content.

ma Rich purchased 100 shares of Stockits, Inc.'s $1 par value common stock from Stockists for $5 per share. Which statements are true regarding the effect of this transaction on Stockits' financial statements? (Select all that apply.)

A. A gains will be reported on the income statement.

B. Stockholders' equity on the balance sheet increases.

C. The investing activities section of the statement of cash flows increases.

D. The financing activities section of the statement of cash flows increases.

E. Stockholders' equity on the balance sheet decreases.

Learn more about Equity here brainly.com/question/1957305

#SPJ1

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The Arcadia Company has 200,000 shares of cumulative, seven percent, $200 par value preferred stock outstanding. Last year the c
mr_godi [17]

Answer:

the dividends in arrears = $2,800,000

the total dividend that must be paid this year = $5,600,000

Explanation:

<u>the dividends in arrears</u>

Last Year = 200,000 shares × $200 × 7%

                = $2,800,000

<u>total dividend that must be paid this year</u>

<em>Note : The Preference Shares are cumulative meaning that arrears in dividends are accumulated to be paid at a future date</em>

Last Year`s Dividend          $2,800,000

<em>Add </em>This Year`s Dividend  $2,800,000

Total                                     $5,600,000

4 0
3 years ago
Read 2 more answers
Berning Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimate
scoundrel [369]

Answer:

$38,000 loss

Explanation:

For calculation of entry to record the sale of the tractor first we need to determine the total depreciation and net book value on Jan 1, 2018 which is shown below:-

Total depreciation = (Tractor cost - Salvage value) × (Hours in 2016 + Hours in 2017) ÷ Hours of operation

= ($180,000 - $20,000) × (2,400 + 2,100) ÷ 10,000

= $72,000

Net book value on January 1, 2018 = Tractor cost - Total depreciation

= $180,000 - $72,000

= $108,000

Loss on sale = Sold tractor amount - Net book value on January 1, 2018

= $70,000 - $108,000

= $38,000

8 0
2 years ago
Kearney Inc. has a factory with the following characteristics: direct labor of $82056, direct materials of $52432 fixed overhead
frutty [35]

Answer:

The amount of cost from Pool A that is allocated to LQ6 is $7,802.

Explanation:

Since Pool A includes all variable overhead and uses direct labor as the allocation base, we can obtain the following from the question:

Direct labor = $82,056

Variable overhead = $146,362

Number of labor hours used by LQ6 = 162

Factory's labor costs per hour = $27

Therefore, we have:

Factory's labor cost of LQ6 = Number of labor hours used by LQ6 * Factory's labor costs per hour = 162 * $27 = $4,374

Variable over allocated to LQ6 from Pool A = (Factory's labor cost of LQ6 / Direct labor) * Variable overhead = ($4,374 / $82,056) * $146,362 = $7,801.83518572682

Rounding to whole number of $ as required, we have:

Variable over allocated to LQ6 from Pool A = $7,802

Therefore, the amount of cost from Pool A that is allocated to LQ6 is $7,802.

4 0
2 years ago
Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding. Because of this, Mountaineer pu
Serjik [45]

Explanation:

1. The journal entry is as follows:

On March 1

Prepaid insurance A/c Dr $36,000

       To Cash A/c $36,000

(Being the prepaid insurance is recorded for cash)

For recording the advance purchase of insurance, we debited the prepaid insurance and credited the cash account. Both the accounts are recorded at $36,000 so that the proper posting could be done.

4 0
2 years ago
TB MC Qu. 9-371 Irving Corporation makes a product with ... Irving Corporation makes a product with the following standards for
lisov135 [29]

Answer:

Variable manufacturing overhead rate variance= $664 favorable

Explanation:

Giving the following information:

Variable overhead 0.2 hours $ 5.10 per hour

The company used 1,660 direct labor-hours to produce this output. The actual variable overhead cost was $7,802.

<u>To calculate the variable overhead rate variance, we need to use the following formula:</u>

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Actual rate= 7,802/1,660= $4.7

Variable manufacturing overhead rate variance= (5.1 - 4.7)*1,660

Variable manufacturing overhead rate variance= $664 favorable

6 0
3 years ago
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