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zheka24 [161]
3 years ago
10

The corporate charter of Pharaoh Tent Co. authorized the issuance of 6 million, $1 par common shares. During 2018, its first yea

r of operations, Pharaoh had the following transactions: February 4 sold 4 million shares at $15 per share October 12 retired 1 million shares at $18 per share December 30 sold the 1 million shares at $20 per share What amount should Pharaoh report as additional paid-in capital in its December 31, 2018, balance sheet?
Business
2 answers:
Ipatiy [6.2K]3 years ago
6 0

Answer:

$58,000,000

Explanation:

the journal entries should be:

February 4, 4 million shares sold:

Dr Cash 60,000,000

    Cr Common stock 4,000,000

    Cr Additional paid in capital 56,000,000

October 12, 1 million shares repurchased:

Dr Treasury stock 18,000,000

    Cr Cash 18,000,000

Treasury stock is a contra equity account that lowers shareholders' equity, and is reported at the end of the balance sheet. When you repurchase stock, you must record the full value of the transaction under treasury stock since it doesn't result in gains or losses.

December 30, treasury stocks are sold again:

Dr Cash 20,000,000

    Cr Treasury stock 18,000,000

    Cr Additional paid in capital 2,000,000    

The credit balance of additional paid in capital account = $56,000,000 + $2,000,000 = $58,000,000

gladu [14]3 years ago
5 0

Answer:

$61 million

Explanation:

Additional paid-in capital credited on Feb 4 = Number of shares sold × (Share selling price - Share par value) = 4 million × ($15 - $1) = $56 million

Worth of shares debited on October 12 = Number of shares retired × (Share original selling price - Share par value) = 1 million × ($15 - $1) = $14 million

Additional paid-in capital credited on December 30 = Number of shares sold × (Share selling price - Share par value) = 1 million × ($20 - $1) = $19 million

Net additional paid-in capital = $56 million - $14 million + $19 million = $61 million

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8 0
2 years ago
On January 1 of the current reporting year, Coda Company's projected benefit obligation was $29.4 million. During the year, pens
Sav [38]

Answer:

The amount of the projected benefit obligation at December 31 was  $ 38.34 million

Explanation:

According to the given data, we have the following:

Beginning PBO= $29.4 million

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The actuary's discount rate was 10%, hence Interest cost (10% x $29.4 million)= $2.94 million

Also, there is a Loss (gain) on PBO=$0 , and pension benefits paid by the trustee were $3.4 million.

Therefore, to calculate the amount of the projected benefit obligation at December 31 we would have to use the following formula:

Ending PBO=Beginning PBO+Service cost+Interest cost-pension benefits

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                   =$38.34 million

4 0
3 years ago
​_____ is the industry term for inventory and cash losses from shoplifting damage to​ merchandise, and employee theft.
vichka [17]

Answer:

correct answer is C. Shrinkage

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Shrinkage is industry term for an inventory and the cash losses

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7 0
3 years ago
Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping
xenn [34]

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True (1)

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Repairability  : Seller must be asked if the product is repairable in case it is faulty.

Accessories : Availability of accessories in the market must be confirmed from the seller in case we need to replace any part.

Failure to sort out above  issues before buying  may result in wasting of money at the end of the day even though product might have been bought  at a cheaper lock-in price.

6 0
2 years ago
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atroni [7]

The two methods used to identify job opportunities are identify the area of specialization and train yourself according to that specialization.

Explanation:

The job offers can be found through Networking, Referrals, company websites, job fairs and social media.

The another method is through employment agency, are agencies that are trying to match up the job applicants to job that suits them. They have a connection with the organization and there is a high probability of landing a job with the organization.

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3 0
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