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VikaD [51]
3 years ago
12

Bargain Central ​Furniture, Inc. completed the following treasury stock transactions in 2016​: LOADING...​(Click the icon to vie

w the​ transactions.) Requirements 1. Journalize these transactions. Explanations are not required. 2. How will Bargain Central ​Furniture, Inc. report treasury stock on its balance sheet as of December ​31, 2016​? Requirement 1. Journalize these transactions. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.) Dec. ​1: Purchased 1 comma 500 shares of the​ company's $1 par value common stock as treasury​ stock, paying cash of $ 5 per share. Date Accounts and Explanation Debit Credit Dec. 1
Business
1 answer:
Mkey [24]3 years ago
5 0

Answer:

Dr Treasury stock - common 7,500

Cr Cash 7,500

Explanation:

Journal entry for Bargain Central ​Furniture

Since the company on Dec. ​1 was said to have make Purchased of the amount of 1 ,500 shares of the​ company's $1 par value common stock as treasury​ stock in which they pay cash of $ 5 per share this means we have to record the transaction by Debiting Treasury stock- common with 7,500 and Crediting Cash with the same amount. The 7,500 is calculated as:

1,500 shares×$5 per share

December 1

Dr Treasury stock - common 7,500

Cr Cash 7,500

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Answer:

$26.52.

Explanation:

We use the MM Proposition I formula as follows:

VL = VU + (Tc * D) ....................................................... (1)

Where;

VL = Value of a levered firm, i.e. X = ?

VU = Value of an unlevered firm, i.e. Y = $24

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D = value of debt = $12

Note: The US 2020 corporate tax rate is used as the tax rate since no tax rate is given in the question.

Substituting the values into equation (1), we have:

VL = $24 + (21% * $12) = $24 + $2.52 = $26.52.

Therefore, According to MM Proposition I, the stock price for Firm X is closest to $26.52.

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3 years ago
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Aloiza [94]

Answer:

C. Matrix Organisation.

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Employees in a matrix organization report on day-to-day performance to the project or product manager whose authority flows sideways (horizontally) across departmental boundaries.

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8 0
3 years ago
T/f the average company hears from over 96% of its unhappy customers. <br> a. True <br> b. False
yuradex [85]

A TRUE

Mark me as Brainliest if I'm correct.

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3 years ago
Federal income taxes are​ ________. A. added to arrive at an​ employee's net pay B. deducted to arrive at an​ employee's net pay
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Answer:

The correct answer is letter "D": deducted to arrive at an​ employee's net pay.

Explanation:

Federal income taxes represent the main monetary resource from where the government can fund its diverse projects. These sources are also allocated to deal with common social issues such as building highways, improving education or funding social programs such as Medicare.

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3 years ago
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