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Triss [41]
3 years ago
6

On February 1, 2018, Cue Company acquired 1,000 shares of its $1 par value stock for $47 per share and held these shares in trea

sury. On April 10, 2019, Cue resold all the treasury shares for $50 per share. Which of the following entries would be recorded when Cue Company resells the shares of treasury stock
Business
1 answer:
Drupady [299]3 years ago
7 0

Answer:

The journal entries to record both transactions should be:

February 1, 2018, repurchase of 1,000 stocks at $47

Dr Treasury stocks 47,000

    Cr Cash 47,000

April 10, 2019, treasury stocks were sold at $50

Dr Cash 50,000

    Cr Treasury stocks 47,000

    Cr Additional paid in capital 3,000

Treasury stocks account is a contra equity account with a debit balance that reduces the value of total stockholders' equity.

You might be interested in
Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid exp
Liula [17]

Answer:

$700 (not given in the options)

Explanation:

When the policy is purchased with a payment made in advance, the entries recorded are

Debit prepaid insurance  $8,400

Credit Cash account         $8,400

After the first month, the expense incurred is

= 1/12 × $8,400

= $700

Entries then required

Debit Insurance expense   $700

Credit Prepaid Insurance    $700

5 0
3 years ago
Waterway Industries buys a delivery van with a list price of $60000. The dealer grants a 13% reduction in list price and an addi
krek1111 [17]

Answer:

Cost of the VAN <em>$53.298‬</em>

Explanation:

We have to enter the van as the cost for a cash purchase and all other neccesary cost to get the van ready for use and in company's possesion.

The financing cost (interest) should be excluded as are not part of the cost the company can chose to take them or not.

list x reduction = invoice

invoice  less discount = cash price

60,000 x (1 - 0.13) x (1 - 0.01) = 51.678‬

to this, we add up the sales tax and the extra cost for the device

51,678 + 860 + 760 = <em>53.298‬</em>

5 0
3 years ago
Current trends indicate that, due to the emerging economies, the world is moving _____ an economic system that is more favorable
Blababa [14]

Answer: closer to

Explanation:

Emerging economies also referred to as developing countries or emerging markets are countries which are investing in more in their productive capacity ans are also gradually moving away from agriculture as it main occupation and there is increase in industrialization.

Due to emerging markets, the world is moving closer to an economic system that is more favorable for international business. There are more quality goods produced by nations and advancement in technology has also helped the economy.

5 0
3 years ago
Ms. Langley is 30 years old and has begun a retirement plan that permits he r to place monthly amounts of $400 into a retirement
elena-14-01-66 [18.8K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Ms. Langley is 30 years old and has begun a retirement plan that permits her to place monthly amounts of $400 into a retirement vehicle, beginning one month from now, for 30 consecutive years.

When Ms. Langley reaches her retirement at age 60, she expects to live for 25 more years. The interest rate is 6%.

First, we need to calculate the amount of money that she will have at age 60, using the following formula.

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit= 400

n= 30*12= 360

i= 0.06/12= 0.005

FV= {400[(1.005^360)-1]}/0.005= $401,806.02

Months= 25years*12= 300 months

Monthly= 401,806.02/300= $1,339.35

4 0
3 years ago
Mack opened a cd 10 years ago at an interest rate of 7.8%, compounded monthly. According to the rule of 72, when did he have hal
Yakvenalex [24]
72 rule says
72/rate=Time
72/7.8= 9.23 years
8 0
3 years ago
Read 2 more answers
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