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Fynjy0 [20]
3 years ago
15

On October 1, 2017, Adoll Company acquired 2,900 shares of its $1 par value stock for $35 per share and held these shares in tre

asury. On March 1, 2019, Adoll resold all the treasury shares for $31 per share. Which of the following entries would be recorded when Adoll Company resells the shares of treasury stock?
a.
Cash Additional 89,900
Paid-in capital Common Stock 11,600
Common Stock 101,500
b.
Cash 89,900
Loss on sale of treasury stock 11,600
Treasury Stock 101,500
c.
Cash 89,900
Additional paid-in capital 11,600
Treasury Stock 101,500
d.
Cash 89,900
Common Stock 2,900
Additional paid-in capital 87,000
Business
1 answer:
Nostrana [21]3 years ago
7 0

Answer:

The answer is c.

Dr Cash Additional 89,900 ;

Dr Paid-in capital Common Stock 11,600

Cr Treasury stock 101,500

Explanation:

We have the Treasury stock account has a Debit balance of 35 x 2,900 = $101,500 post resold. As the resold take place, this account should be cleared to 0. Thus, we credit this account by $101,500;

Cash receipt is 31 x 2,900 = $89,900. Thus, we debit Cash account by the same amount.

The difference 11,600 ( 101,500 - 89,900) will be debited into Paid-in capital common stock account; assuming that after the Debit entry is made, the account still have the Credit balance. Otherwise, the excessive Debit amount that made Paid-in capital account's balance less than 0 Credit will be Debit into Retained Earnings account.

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A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is cal
dmitriy555 [2]

Answer:

D) incremental budget

Explanation:

An incremental budget is a budget in which the budget is prepared based on the last year budget or the actual performance so that the amounts that are increased or decreased could be added for the current year budget

Here in the given situation, the allocation of the budget is either increased or decreased by using the previous year budget is known as incremental budget

hence, the correct option is D. Incremental budget

8 0
3 years ago
Specialization of labor results in the production of large quantities of a product.a. trueb. false
il63 [147K]

Answer: True

Explanation: Specialisation of labour in production is the process of classifying People who have different skills, talents, and interests into groups so they will be better at what they do.

Specialisation in certain tasks often aid workers to produce more quickly and with higher quality especially in assembly line laborers.

Specialization also allows businesses to take advantage of economies of scale, which means that for many goods, as the level of production increases, the average cost of producing each individual unit declines.

The division and specialization of labor has been a force against the problem of scarcity as more product will be produced as against when there is not specialisation in division of labour.

6 0
2 years ago
FedEx Corp stock ended the previous year at $103.39 per share. It paid a $0.35 per share dividend last year. It ended last year
mr Goodwill [35]

Answer:

$730 and 3.53%

Explanation:

Given that

Initial Price = $103.39

Ending Price = $106.69

Dividend Paid = $0.35

Number of Shares owned = 200

The computation of the dollar return and the percent return is shown below:

Dollar return is

= [0.35 + ($106.69 - $103.39)] × 200

= $730

And, the percentage return is

= $730 ÷ (200 × $103.39)

= 3.53%

6 0
3 years ago
Preparing job order costing journal entries
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Answer:

Item a

Debit : Website expenses $2,000

Credit : Cash $2,000

Item b

Debit : Work in Process : Direct labor $11,250

Debit : Work in Process : Indirect labor $3,750

Credit : Wages Payable  $15,000

Item c

Debit : Raw Materials $24,000

Credit : Accounts Payable $24,000

Item d

Debit : Work in Process : Direct Materials  $7,500

Debit : Work in Process : Indirect Materials $5,000

Credit : Raw Materials $12,500

Item e

Debit : Work in Process : Depreciation $18,000

Credit : Accumulated depreciation $18,000

Item e

Debit : Work in Process : Pant Insurance  $1,500

Credit : Prepaid insurance  $1,500

Item e

Debit : Work in Process : Property tax  $3,900

Credit : Property Tax Payable  $3,900

Item f

Debit : Overheads $11,250 x 200% $22,500

Credit : Work in Process $22,500

Item g

Debit : Finished Goods Inventory $40,000

Credit : Work in Process $40,000

Item h

Debit : Accounts Receivables   $22,000

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Credit : Sales Revenue  $22,000

Credit : Finished Goods Inventory $18,000

Explanation:

The journals for the transactions have been prepared above.

4 0
3 years ago
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Wittaler [7]

Answer:

C. strictly liable for Will's injuries

Explanation:

In law, Strict liability is a situation when defendant is required to be responsible to a certain situation, but can't be considered as guilty to any violation.

There are two points that need to be highlighted from the case above:

1.  Astor Manufacturing process has fulfilled all of its safety regulation for storing the dangerous product.

2. The dangerous product owned by Astor Manufacturing caused William's injury.

The regulations for hazard management is created by the government, and the leak is not caused by their negligence. It's caused by unexpected natural disaster.  This is why we can't say that Astor is guilty to any violation.

But still, the chemical that they created injured William. The court will most likely force Astor to be responsible for all the medical expenses incurred by william.

6 0
3 years ago
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