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jarptica [38.1K]
3 years ago
14

Horton Co. was organized on January 2, 2014, with 500,000 authorized shares of $10 par value common stock. During 2014, Horton h

ad the following capital transactions:
January 5-issued 375,000 shares at $14 per share.
July 27-purchased 25,000 shares at $11 per share.
November 25-sold 18,000 shares of treasury stock at $13 per share.

Horton used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2014?
Business
1 answer:
Harrizon [31]3 years ago
7 0

Answer:

The balance in the Paid-in Capital from Treasury Stock account at December 31, 2014 is $36,000

Explanation:

The computation of the balance in the treasury stock account is shown below:

= Number of shares sold × (Selling price of share - purchase price of share)

= 18,000 shares × ($13 per share - $11 per share)

= 18,000 shares × $2 per share

= $36,000

The other items which are mentioned like issued shares, authorized shares are irrelevant because we have to compute for the treasury stock, not for the common stock. So, these parts would be ignored in the computation part.

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On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred: Factory Manager Salary $7,000 Facto
qaws [65]

Answer:

Explanation:

check the file attached for full explanation

Download docx
7 0
3 years ago
According to Adam​ Smith, which of the following is necessary for the proper functioning of the market​ system?
nlexa [21]

Answer:

The correct answer is the option C: For markets to work, people must be free to pursue their self-interest.

Explanation:

To begin with, Adam Smith was a Scottish economist, philosopher and author known as ''The Father os Economics'' and whose works established the basics of today's economics.

To continue, in Smith's most known classic work, ''An Inquiry into the Nature and Causes of the Wealth of Nations'', he established the concept called the <u><em>''invisible hand''</em></u><u> </u>that states that <u><em>in order to the economy to work properly, the people must be free to pursue their self-interest products without no restrictions from the government</em></u>.

4 0
3 years ago
Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the
Triss [41]

Answer:

ATTACHED file with the bonds schedule

Explanation:

First, we solve for the proceed from the issuance:

PV of the coupon:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 25,000.000 (500,000 x 10%/2)

time 7 (3 and a half year x 2 payment per year)

rate 0.06 (12% annual / 2)

25000 \times \frac{1-(1+0.06)^{-7} }{0.06} = PV\\

PV $139,559.5360

PV of maturity:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   500,000.00

time   7.00

rate  0.06

\frac{500000}{(1 + 0.06)^{7} } = PV  

PV   332,528.56

PV c $139,559.5360

PV m  $332,528.5568

Total $472,088.0928

Then we construct the bonds schedule as follows:

procceds 472,088

face value 500,000

discount on bonds payable -27,912

bond rate 0.05

market rate 0.06

ionterest expense: carrying value times market rate:

472,088 x 0.06 = 28,325.29

cash outlay          25,000

amortization          3,325.29

carrying value after first payment:

472,088 + 3,325.29 = 475,413.29

and the process repeat for all periods.

3 0
3 years ago
At the beginning of the current year, X Company had assets of $600, liabilities of $300, and common stock of $100. During the cu
Viefleur [7K]

Answer:

$250 is the answer

Explanation:

As we want to calculate here the net income which could be found from the following formula:

Net Income or Profit = Sales  -  Expenses

In this case the sales figure is $750 and the expenses are $500.

By putting the values we have

Net Income = $750 - $500 = $250

6 0
3 years ago
Normative statements involve value judgement is these statemen true or false?
KATRIN_1 [288]

Answer:

A normative statement is one that makes a value judgment. Such a judgment is the opinion of the speaker; no one can prove that the statement is or is not correct

Explanation:

3 0
3 years ago
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