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Rina8888 [55]
3 years ago
5

At the beginning of the year (January 1), Buffalo Drilling has $10,000 of common stock outstanding and retained earnings of $7,2

00. During the year, Buffalo reports net income of $7,500 and pays dividends of $2,200. In addition, Buffalo issues additional common stock for $7,000.
Prepare the statement of stockholders’ equity at the end of the year (December 31)
Business
1 answer:
Marta_Voda [28]3 years ago
7 0

Answer:

The preparation of the statement of stockholders’ equity at the end of the year is presented below:

Explanation:

For preparing the statement of stockholders’ equity at the end of the year, first we have to determine the ending retained earning balance which is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

= $7,200 + $7,500 - $2,200

= $12,500

Now the preparation is shown below:

                                       Buffalo Drilling

                       Statement of stockholders’ equity

                     At the end of the year (December 31)

Common stock outstanding    $10,000

Add: retained earning               $12,500

Add: Issued additional

Common stock                          $7,000

Total stockholder equity           $29,500

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Benson Company produces flash drives for computers which have variable costs of $10 per flash drive to produce. Each flash drive
Leno4ka [110]

Answer:

It increases by 50 units.

Explanation:

Current break even point = \frac{Fixed\:Cost}{Contribution\:per\:unit}

Here, fixed cost = $4,500

Contribution per unit = Selling price - Variable Cost = $20 - $10 = $10

Current break even point = \frac{4,500}{10} = 450 units

If variable cost increase by 10% then revised variable cost = $10 + 10% = $11

Contribution per unit = $20 - $11 = $9 per unit

Break even sales in units = \frac{4,500}{9} = 500 units

Difference in original and revised break even = Revised - Original = 500 - 450 units = 50 units,

Thus original break even increases by 50 units, = 50/450 = 11.11% increase.

Final Answer

It increases by 50 units.

6 0
2 years ago
Which of the following statements are TRUE?
Goryan [66]
D) Checkabe Deposits are assets for the bank
4 0
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A recent study conducted by the state government attempts to determine whether the voting public supports a further increase in
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8 0
3 years ago
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances
Maru [420]

Answer:

                                              30-Nov                 31-Dec

                                       debit      credit        debit      credit

supplies                       $2,000                    $3,500

prepaid Insurance      $8,000                    $6,000

salaries payable                           $11,000                  $16,000

unearned revenue                       $3,000                    $1,500

1. Purchases of supplies in December total $4,500.

Dr Supplies expense 3,000

    Cr Supplies 3,000

beginning balance = $2,000 + $4,500 = $6,500

supplies expense = $6,500 - ending balance

2. No insurance payments are made in December.

Dr Insurance expense 2,000

    Cr Prepaid insurance 2,000

Insurance expense = November 30's balance - December 31's balance

3. $11,000 is paid to employees during December for November salaries.

Dr Salaries expense 16,000

    Cr Salaries payable 16,000

The beginning balance of salaries payable = $11,000, then it was paid (balance = $0), so any ending balance represents wages expense.

4. On November 1, a tenant pays Golden Eagle $4,500 in advance rent for the period November through January.

Dr Unearned revenue 1,500

    Cr Rental revenue 1,500

Monthly rent revenue = $4,500 / 3 = $1,500

unearned revenue balance Nov. 30 = $3,000

unearned revenue balance Dec. 31 = $1,500

rental revenue = Nov. 30's balance - Dec. 31's balance

8 0
2 years ago
Which of the following is most likely missing from your financial plan if you are not prepared for an emergency? a. financing b.
suter [353]
I believe the answer is: Savings

When you experience a sudden emergency without preparation, you would most likely take out some percentage of money from your life savings to survive the crisis.To prevent this, most people decided to set aside an emergency fund at their banks or covered their risk by buying insurances.
6 0
3 years ago
Read 2 more answers
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