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Vilka [71]
3 years ago
9

Roberto designers was organized on January 1,2021. The firm was authorized to issue 100,00 shares of $5 par value common stock.

During 2021, Roberto had the following transactions relating to stockholder's equity:
Issued 10,000 shares of common stock at $7 per share.
Issued 20,000 shares of common stock at $8 per share.
Reported a net income of $100,000.
Paid dividends of $50,000.
Purchased 3,000 shares of treasury stock at $10 (part of the 20,000 shares issued at $8).
A) $270,000
B) $200,000
C) $300,000
D) $250,000
Business
1 answer:
jekas [21]3 years ago
8 0

Answer: the correct answer is D) $250,000

Explanation:

Answers

transactions relating to stockholder's equity

Issued shares 10,000* $7 = $70,000

Issued shares 20,000*$8   = $160,000

net income                            = $100,000

                                                --------------  

Sub Total                                 $330,000  

Debts                              

50,000 dividend                       ($50,000)

3,000 *$10 treasury stock       ($30,000)    

                                                   --------------  

Sub Total                                   ($80,000)

Total   $330,000-$80,000 =  $250,000                                    

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3 years ago
Assume that Horicon Corp acquired 25% of the common stock of Sheboygan Corp. on January 1 for $300,000. During the year Sheboyga
Misha Larkins [42]

Answer:

Option C. Debit Cash and credit Stock Investments

Explanation:

The reason is that in the equity method of recording the dividends receipts, it is always deducted from the stock investment and the relevant share of reported net income of the associate is added to the stock investment.

So mathematically,

Stock Investment Under Equity Method = Opening Value for the year + Share of Net Income - Dividend received

Stock Investment Under Equity Method = $300,000 + $160,000 * 25% + $60,000 * 25% = $325,000

The above treatment shows that the recording of dividends include credit to stock investment and the cash receipt is always debited.

So the double entry would be:

Dr Cash $15,000

Cr Dividends $15,000

So the option C is correct.

3 0
3 years ago
Bryce Co. sales are $801,000, variable costs are $465,100, and operating income is $287,000. What is the contribution margin rat
KATRIN_1 [288]

Answer:

Contribution margin ratio= 0.42

Explanation:

Giving the following information:

Bryce Co. sales are $801,000

Variable costs are $465,100

Operating income is $287,000.

<u>To calculate the contribution margin ratio, we need to use the following formula:</u>

contribution margin ratio= (sales - variable cost) / sales

contribution margin ratio= (801,000 - 465,100) / 801,000

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8 0
3 years ago
LO 2.2Which of the following are prime costs?
sesenic [268]

Answer:

OPTION D: Direct Labor and Direct Material

Explanation:

Prime cost of a product is defined as the direct costs of producing a product including direct material costs and direct labor costs. Any other manufacturing overheads, indirect expenses and indirect materials/labor cost are not included in the calculation of PRIME COSTS .

                 Prime Cost = Direct Material Cost + Direct Labor Cost

Therefore, OPTION D: direct Labor and direct materials is the correct definition of prime costs.

4 0
3 years ago
Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bear
Aleksandr-060686 [28]

Answer:

$800

$1,000

The quantity of money demanded decreases as the interest rate rises.

Explanation:

a

To calculate the opportunity cost on government bond at 8%, we use the following method

Opportunity Cost for 8% interest rate on Government Bonds

= (8/100)%× $10,000

= 0.08% ×$10,000

= $800

To calculate the opportunity cost government at bond on 10%, we use the following method

Opportunity Cost for 10% interest rate on Government Bonds

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= 0.1%×$10,000

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b. The quantity of money demanded decreases as the interest rate rises.

4 0
3 years ago
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