Answer:
The first transaction is that 10 million shares are being reacquired at 32.50 per share so we need to find out how much cash is spent to buy these shares.
32.5*10 million = $325 million
We will debit treasury stock and credit cash because the company is buying shares from the market and paying cash
The second transaction is reacquiring 10 million shares at 36 per share so we need to find how much cash is spent
10 million *36= $360 million
We will debit treasury stock and credit cash because the company is buying shares from the market and paying cash
In the third transaction 1 million shares are being sold for 42, so need to figure out how much cash the company gets from the transaction
42* 1 million = 42 million
We will debit cash and credit common stock as the company is issuing shares to the market and getting cash for it
In the fourth transaction 1 million shares are being sold for 36, so need to figure out how much cash the company gets from the transaction
36* 1 million = 36 million
We will debit cash and credit common stock as the company is issuing shares to the market and getting cash for it
Journal entries
Debit Credit
Treasury stock 325 million
Cash 325 million
Treasury stock 360 million
Cash 360 million
Cash 42 million
Common stock 42 million
Cash 36 million
Common stock 36 million
Explanation:
Answer:
The asnwer is C, Certificate of deposit.
Explanation:
In the U.S., securities are defined as contracts in which one party invests money with another and expects to make a return.
Regular bank cerificates of deposits are not regulated as securities.
Cerificates of deposits are time-deposit agreements between individuals and banks that involve a depositor committing funds to the bank for a predetermined period of time in exchange for a specified rate of interest.
Answer:
Caveat emptor is the correct answer.
Explanation:
Answer:
(A) $731,250
Explanation:
The formula to compute the break-even point in sales dollars is shown below:
= (Fixed expenses or Fixed cost) ÷ (Contribution ratio)
where,
Contribution ratio = Contribution margin ÷ sales
= $208,000 ÷ $650,000
= 0.32 or 32%
And, the fixed expense is $234,000
Now put the values to the above formula
So, the value would equal to
= $234,000 ÷ 32%
= $731,250
Answer:
Using Traditional allocation method
Allocation rate per unit
=<u> Budgeted overhead</u>
Budgeted direct labour hours
Brass
Overhead allocation rate
= <u>$47,500</u>
700 hours
= $67.86 per direct labour hour
Gold
= <u>$47,500</u>
1,200 hours
= $39.58 per direct labour hour
Using activity-based costing
Brass
Allocation rate for material cost pool
= <u>$12,500</u>
400
= $31.25 per material moved
Gold
Allocation rate for material cost pool
= <u>$12,500</u>
100
= $125 per material moved
Brass
Allocation rate for machine set-up pool
= <u>$35,000</u>
400
= $87.50
Gold
Allocation rate for machine set-up pool
= <u>$35,000</u>
600
= $58.33
Explanation:
Using traditional allocation method, the overheads for material cost pool and machine set-up pool will be added. The overhead allocation rate per unit is the division of total overhead by the direct labour hours for each product.
Using activity-based costing, the material cost pool overhead will be divided by the material moved for each product in order to obtain allocation rate for each product.
The allocation rate for machine set-up pool is obtained by dividing the machine set-up overhead by the number of machine set-up for each product.