The process of writing off an intangible asset is

Dilution solutions, inc. repurchased 500 shares of its $2 par value common stock for $10,000. the effect of this transaction on

mr Goodwill [35]

$10,000 increase in Treasury Stock is the effect of this transaction.

<h3>What is cost method?</h3>

The cost method exists as a method of accounting. It is utilized for recording precise investments in a company's financial statements. This particular method lives used when an investor has little or no effect over the investment that they own.

The cost method of accounting is used for recording particular investments in a company's financial statements. This method is used when the investor exercises little or no influence over the acquisition that it owns, which exists typically represented as owning less than 20% of the company.

Treasury stock stands also known referred to as treasury shares and it happens when stock stands bought by the issuing company back from the stockholders.

This results in a reduction in the whole number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will get about a $10,000 gain in the treasury stock.

To learn more about cost method refer to:

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3 0

2 years ago

What does it mean to have a shortage of goods?

ohaa [14]

It basically means that a store doesn't have alot in Stock mostly food. so if your grocery store was running out of canned corn and chips etc. they would have a shortage of goods

3 0

3 years ago

The following is a list of accounts commonly seen in financial statements. Identify whether each account appears on the balance

Anastasy [175]

Answer:

Balance sheet:

Accounts Payable -Liability

Property, Plant. and Equipment -Asset

Long-Term Debt-Liability

Retained Earnings-equity account

Prepaid Expense -Asset

Common Stock -equity account

Accounts Receivable-Asset

Income statement:

Cost of Goods Sold-expense

Research and Development-expense

Explanation:

Property, plant and equipment , accounts receivable and prepaid expenses would appear on the asset side of the balance sheet.

Long-term debt and accounts payable are both liabilities since they are obligations owed to third parties while retained earnings and common stock are both equity account

Lastly,cost of goods sold and research and development cost are expenses in the income statement

3 0

3 years ago

On January 1, 2021, for $17.9 million, Seashells Company issued 8% bonds, dated January 1, 2021, with a face amount of $19.9 mil

bearhunter [10]

Answer:

Cash A/c Dr. $796,000

Discount A/c Dr. $99,000

To, Interest Revenue 895,000

Explanation:

According to the scenario, computation of the given data are as follows,

Face value = $19.9 million

Issued bond rate = 8% annually or 4% semi annual

So, Cash = $19,900,000 × 4%

= $796,000

Issued bonds value = $17.9 million

Market yield = 10% annual or 5% semi annual

So, Interest revenue = $17,900,000 × 5%

= $895,000

So, Journal entries are as follows,

Jun.30,2021 Cash A/c Dr. $796,000

Discount A/c Dr. $99,000

To, Interest Revenue 895,000

(Being interest revenue on June30 is recorded)

5 0

3 years ago

Suppose you win the lottery and have two options: A. Take $1 million now. B. Take $1.2 million to be paid out as 300,000 now and

laila [671]

Answer:

A. Take $1 million now.

Explanation:

A. If we take $1 million now the present value of the money is $1 million.

B. If we choose to take $1.2 million paid out over 3 years then present value will at 10% will be;

$300,000 + $300,000 / 1.2 + $300,000/ 1.44 + $300,000 / 1.728

$300,000 + $250,000 + $208,000+ $173,611 = $931,944

The present value of option B is less than present value of option A. We should select option A and take $1 million now.

4 0

3 years ago