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WINSTONCH [101]
3 years ago
14

On December 2, Coley Corp. reacquired 1,400 shares of its $4 par value common stock for $20 each. On December 20, Coley Corp. re

issued 1,000 shares for $11 each. Which of the following is correct regarding the journal entry for the reissued shares?
Credit Additional Paid-in Capital $7,000

Credit Treasury Stock $20,000

Debit Cash $15,400

Credit Treasury Stock $11,000
Business
1 answer:
NISA [10]3 years ago
8 0

Answer:

Credit Treasury Stock $20,000

Explanation:

Treasury shares are those share which is bought back by the company. Treasury stock account is the contra equity account which is deducted from the equity value.

Journal Entry for Re-issuance of treasury stock

Dr.     Cash ( 1,000 x $11 )                    $11,000

Dr.     Add-in capital Treasury stock   $9,000

Cr.    Treasury Stock ( 1,000 x $20 )   $20,000

Due to debit nature of treasury stock it is credit to reduce the balance of treasury stock.

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What can a speaker do to ensure that they are respectful of their audience, especially when speaking to a skeptical audience or
ololo11 [35]

ANSWER

Always state the facts pertaining to your speech.  

Always avoid stereotypes during a speech.  

Never bash or be bias.  

Remain objective.  

Have respect for the people and their values as well as beliefs .

Explanation:

8 0
3 years ago
This is a growth strategy with a goal to take customers away from competitors.
vitfil [10]

Answer:

market penetration

Explanation:

As market is already created but the share of the company needs to be higher.

8 0
3 years ago
Digital Fruit is financed solely by common stock and has outstanding 40 million shares with a market price of $20 a share. It no
Marina CMI [18]

Answer:

Digital Fruit

The expected market price of the common stock after the announcement is:

$20 per share.

Explanation:

Outstanding number of shares = 40 million

Market price of outstanding shares = $20 a share

Total market capitalization = $800 million

Debts introduced = $310 million

Market capitalization after the debt issue = $490 million ($800 - 310 million)

Number of shares bought back = $310 million /$20 = 15,500,000

Outstanding number of shares after the buy-back = 40 million minus 15.5 million

= 24,500,000 shares

Expected market price of the common stock after the announcement

= $490,000,000/24,500,000

= $20 per share

3 0
3 years ago
Nunavet Ocean Cruises sold an issue of 12-year ​$1,000 par bonds to build new ships. The bonds pay​ 4.85% interest, semi-annuall
frez [133]

Answer:

bond market value $660

Explanation:

We need to calculate the present value of the maturity and the cuopon payment using the effective rate of 9.7%

First we do the annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  24.25  (1,000 face value x 4.85 bond rate / 2 )

time  24.00 (12 year 2 payment a year)

rate  0.04850 (current rate divide by 2 to get it annually)

24.25 \times \frac{1-(1+0.0485)^{-24} }{0.0485} = PV\\

PV $339.55

Then present value of the maturity

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00 the face value of the bond

time   24.00

rate   0.04850

\frac{1000}{(1 + 0.0485)^{24} } = PV  

PV   320.89

Finally we add them together:

PV coupon payment $339.5545

PV maturity  $320.8910

Total $660.4455

rounding to nearest dollar

bond market value $660

7 0
3 years ago
Privately owned businesses are common in which type of economy?
Mariana [72]
Privately owned businesses are commonly found in capitalist economies.
4 0
3 years ago
Read 2 more answers
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