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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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Learn more about Workflow process here

<em>brainly.com/question/11939249</em>

3 0
2 years ago
Read 2 more answers
Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ5 at a price o
pantera1 [17]

Answer:

For the special order the company will not incur any additional fixed cost as the special order is within the normal range of production.

Sales ( 10000 * 5 ) 50000

(-) Direct materials ( 10000 * 1.75 ) 17500

(-) Direct labor ( 10000 * 2.50 ) 25000

(-) Variable overhead ( 10000 * 1.50 ) 15000

Income / (loss) (7500)

Required 1 :

Answer : Reject

Required 2 :

Answer : Decrease by 7500

3 0
3 years ago
Josefina is the only seller of sopapillas in town. Last week, she sold 200 sopapillas, and the marginal revenue of the 200th sop
Alex73 [517]

Answer:

Josefina is not maximizing her profits since she is making a loss of $0.25.

Explanation:

The marginal revenue is the total amount of revenue received from selling an additional unit of product while the marginal cost is the total cost incurred for producing an additional unit of product. The marginal cost and revenue can be compared to determine if producing and selling an additional unit is profitable or will cause a loss.

The profit/loss can be expressed as;

P/L=R-C

where;

P=profit

L=loss

R=total marginal revenue

C=total marginal cost

In our case;

P/L=unknown

R=marginal revenue per unit×number of units=1.50×1=$1.50

C=marginal cost per unit×number of units=$1.75×1=$1.75

replacing;

P/L=1.50-1.75=-$0.25

Since the marginal cost is greater than the marginal revenue, we can conclude that Josefina is making a loss of $0.25

7 0
3 years ago
Gross payroll for the employees of Bannister Enterprises totals $100,000 per week. From this must be withheld Social Security ta
bogdanovich [222]

Answer:

B) $77,350

Explanation:

Gross payroll=$100,000

Social Security taxes =6.20%

6.20/100×$100,000

=0.062×$100,000

=$6,200

Medicare taxes = 1.45%.

1.45/100×$100,000

=0.145×$100,000

=$1,450

federal and state income tax =15%

15/100×$100,000

=0.15×$100,000

=$15,000

Total Withholdings=

$6,200+$1,450+$15,000

=$22,650

Total employee compensation= Gross earnings-total withhold

=$100,000-$22,650

=$77,350

4 0
3 years ago
A company has net working capital of $0, current liabilities of $25 and total assets equal to $100. What is its current ratio?
kap26 [50]
I believe the answer is B) 1.0
6 0
3 years ago
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