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timofeeve [1]
2 years ago
14

On January 1, C company sells 50,000 shares of $3 par common stock for $5. It does not issue any preferred stock. Later on the c

ompany buys back 10% of its common shares outstanding for $7 per share. Total equity on December 31 is $300,000. What is retained earnings on December 31
Business
1 answer:
cestrela7 [59]2 years ago
5 0

Answer:

$85,000

Explanation:

Given that,

Shares sold = 50,000 shares of $3 par common stock for $5

Buys back = 10% of its common shares outstanding for $7 per share

Total equity on December 31 = $300,000

Balance in stockholder's equity without retained earnings:

= Beginning balance in stockholder's equity + Increase in stockholder's equity - Decrease in stockholder's equity

= $0 + (50,000 × $5) - (50,000 × 10% × $7)

= $250,000 - $35,000

= $215,000

Retained earnings on December 31:

= Total equity at December 31 - Balance in stockholder's equity without retained earnings

= $300,000 - $215,000

= $85,000

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2 years ago
Storm Concert Promotions Valle Home Builders
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Answer:

<u><em>Storm Concert Promotions</em></u>

It was overapplied as the amount appliued exceed the actual overhead cost so we decrease the cost of good.

manufacturing overhead   3,200 debit

            COGS                         3,200 credit

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It was underapplied as the amount applied was below the actual overhead cost. We must increase the cost of our good sold to recognize the extra cost.

COGS                                 1,200 debit

manufacturing Overhead       1,200 credit

Explanation:

Storm Concert Promotions

Actual indirect materials costs     22,000

Actual indirect labor costs            46,000

Other overhead costs            <u>        17,000   </u>

Total overhead                             85,000

Overhead applied                        88,200

Overapplied overhead                   3,200

Valle Home Builders                

Actual indirect materials costs  12,500

Actual indirect labor costs        46,500

Other overhead costs            <u>    47,000   </u>

Total overhead                         106,000

Overhead applied                   105,200

Overhead underapplied             1,200

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Answer:

B. FALSE

Explanation:

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Answer:

The County Auditor is the Chief <u>Fiscal</u> Officer of a county.

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2 years ago
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Answer:

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Cost of goods sold 2,500,000

Gross profit             $500,000

Depreciation             200,000

EBIT                        $300,000

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