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vlabodo [156]
3 years ago
12

Marina, Inc., acquires 1 million shares of its own $1 par value common stock at $70 per share. It later resells the 1 million sh

ares of treasury stock for $75. We record the $5 difference per share as a:a. gain in the income statement,b. revenue in the income statement,c. credit to Additional Paid-in Capital,d. credit to Common Stock.
Business
1 answer:
Archy [21]3 years ago
3 0

Answer:

c. credit to Additional Paid-in Capital

Explanation:

The journal entry to record the difference is shown below:

Cash A/c Dr $75 million

      To Treasury stock A/c $70 million    (1 million shares × $70 per share)

      To Additional paid in capital - in excess of par $5 million

(Being the issuance of treasury stocks is reported and the amount remaining is credited to the additional paid-in capital account)

You might be interested in
intelligent industries recently purchased a $50,000, 10% 12-month bond. from intelligent’s point of view, this bond would be con
Paul [167]

from Intelligent’s point of view, this bond would be considered a current asset, because it represents a resource that can easily be converted to cash within one year.

A bond is a debt instrument. A bondholder is entitled to regular predetermined interest rate payments and at the end of the bond's tenure, the bondholder would receive the amount invested.

Current assets are assets that are expected to be sold, used, or exhausted through standard business operations with one year.

Examples of current asset are:

  • cash
  • cash equivalents
  • accounts receivable
  • stock inventory
  • marketable securities
  • pre-paid liabilities

To learn more, please check: brainly.com/question/14287268

5 0
2 years ago
Bramble Corp. incurs the following costs to produce 13000 units of a subcomponent: Direct materials $10920 Direct labor 14690 Va
Mumz [18]

Answer:

$4,850

Explanation:

The computation is shown below:

Total cost when the production is 13,000 units

Direct materials $10,920

Direct labor $14,690

Variable overhead $16,380

Total $41,900

And, the other case

Their new cost on supplier offer is

= $2.85 × 13,000 units

= $37,050

In the case when the order is accepted So the net income would increased by

= $41,900 - $37,050

= $4,850

7 0
3 years ago
Choose the items below that would be added to the book balance on a bank reconciliation. (Check all that apply.)
Blizzard [7]

Answer:

A. Interest earned on the depositor's account

B. Deposit in transit and Note collected by the bank for the depositor

Explanation:

In Financial accounting, bank reconciliation can be defined as an evaluation which give a complete details of the financial items responsible for any difference between the balance of the cash account in the balance sheet and the cash balance reported in an entity's bank statement. These reconciliations should be done at regular intervals so as to ensure a balanced record of the cash account are kept by an organization or firm.

Adjusted balance ends the bank section of a bank reconciliation. Thus, in the event of any fraudulent behavior by an employee, the bank reconciliation would detect any anomaly or financial fraud in the organization.

In a nutshell, after a reconciliation of the bank statement, the adjusted bank balance should be equal to the company's ending adjusted cash balance on the balance sheet.

The items that would be added to the book balance on a bank reconciliation include the following;

A. Interest earned on the depositor's account.

B. Deposit in transit and Note collected by the bank for the depositor.

3 0
3 years ago
Gary, Peter, and Chris and have capital balances of $26,000, $38,000, and $30,000, respectively. As per the partnership agreemen
ycow [4]

Answer:

A) $3,429

Explanation:

Bonus capital paid by the new shareholders will be distributed among the Old Partner on the basis of their old sharing ratio

Capital Balance of Peter = $38,000

Settlement amount = $20,000

As we does not have revised profit ratios, Peter and Chris will share profit on their old ratios.

Remaining balance of Gary's capital = $26,000 - $20,000 = $6,000

Peter Share = 4/7 x $6,000 = $3,429

 

6 0
3 years ago
What are the supply shifters?
vodka [1.7K]

Answer:

All factors influencing supply other than price of the commodity.

Explanation:

Supply shifters are all factors influencing supply (other than price of the commodity) such as relative price, level of technology, cost of production, weather, future price expectations, number of producers, natural disasters, government policy and aims of the producer. These factors can shift supply either to the left or right.

8 0
3 years ago
Read 2 more answers
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