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Katyanochek1 [597]
1 year ago
7

On July 1, Kingbird, Inc. purchases 570 shares of its $5 par value common stock for the treasury at a cash price of $12 per shar

e. Journalize the treasury stock transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Business
1 answer:
Rashid [163]1 year ago
6 0

The treasury stock transaction when cash price of $12 per share for treasury is 6840 (debit )

<h3>Treasury stock :</h3>

Treasury stock, commonly referred to as treasury shares or reacquired stock, denotes previously outstanding stock that the issuing business has acquired from stockholders. The overall number of outstanding shares on the open market declines as a result. Treasury stocks, also known as reacquired stocks, are shares that the issuing business has purchased back, therefore lowering the number of outstanding shares on the open market.

<h3>Journalizing the treasury stock :</h3>

Treasury stock account = 570 × $ 12

                                     =  6840 (Debit)

To Cash account    6840 (Credit)

(Being stock purchased for cash)

This is where cash comes in, so credit cash to reduce your cash balance. Cash back shares. Common shares are therefore claimed.

<h3>What advantages do Treasury Stocks have?</h3>

Limiting outside ownership and holding stock in reserve to sell to the public in the future in case funding is needed now are two advantages of having treasury stock for a corporation.

Learn more about treasury stock :

brainly.com/question/10228146

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3 years ago
You are considering buying a company using leveraged buyout. The company is projected to have sales of 500 million each year in
worty [1.4K]

Answer:

Net income=  $33 million

Explanation:

A leveraged buyout is a buyout of an entity by it's own managers/board members mostly through debt financing. Now the expected sales after the buyout is 500 million, we are asked to calculate net income only in the first year. First of all lets see what net income is. Net income is the remaining amount of income after having paid all the expenses which is mostly the residual income available for either distribution to shareholders or transfer to retained earnings.

The formula for net income is as follows:

Net income/profit= Sales revenue - COGS - Administrative expenses- depreciation and amortization - Interest expense - Tax

Let first calculate COGS & other administrative expense, depreciation and interest expenses first.

COGS & ADMIN: 500*0.6=300 m

Depreciation: 500*0.05 =25m

Interest expense for the year: 1500 * 0.08= 120m

Now lets substitute values in the formula mentioned above:

Income before taxes: 500m - 300m - 25m - 120m

Income before taxes: 55m

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Net income=  $33 million

4 0
4 years ago
Which action can a user with the standard system administrator profile take? (Choose 3)
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Answer:

The correct answers are: A) Assign custom profiles to users ; C) Reset all users passwords; E) Assign feature license to usersAssign custom profiles to users.

Explanation:

Passwords that effectively take these problems into account are known as robust passwords, while those that do not, are called weak. It is important for the security of the organization to create strong passwords, the more robust the passwords are, the less likely they are to be discovered or guessed. There are two options available to reinforce the use of robust passwords:

- The system administrator can create passwords for all users.

- The system administrator can let users create their own passwords, while verifying that the passwords are robust enough.

Creating passwords for all users ensures that they are robust, but it becomes a heavy task as the organization grows. It also increases the risk of users entering their passwords.

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How much does it cost to declaw a cat at petsmart?
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Donna Holbrook, an administrative assistant at Mason Enterprises, charged some office supplies to the company credit card. Sever
Slav-nsk [51]

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The company will therefore, be incurring the same cost twice.

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