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vladimir1956 [14]
3 years ago
6

Accounting for Treasury Stock On February 1, 2019, Destiny Enterprise repurchases 750 shares of its outstanding common stock for

$9 per share. On March 1, 2019, Destiny sells 270 shares of treasury stock for $12 per share. On May 10, 2019, Destiny sells the remaining 480 shares of its treasury stock for $6 per share.
Required:
Prepare the journal entries to record these transactions.

2019 Feb. 1
Treasury Stock
Cash
(Record purchase of treasury shares) Mar. 1
Cash
Treasury Stock
Additional Paid-In Capital - Treasury Stock
(Record reissue of treasury shares) May 10
Cash
Additional Paid-In Capital - Treasury Stock
Retained Earnings
Treasury Stock (Record reissue of treasury shares)
Business
2 answers:
dsp733 years ago
7 0

Journal entry:

Feb-1:  Dr Treasury stock ( 750*9)   6750

                     Cr Cash                                 6750

               (To record purchase of treasury stock)

March-1: Dr Cash ( 270*12)    3240

                          Treasury stock    ( 270* 9)   2430

                           Paid up capital                     810

               (To record sale of shares above cost)

March-10 : Dr Cash (480 * 6)      2880

                 Dr Paid up capital     1440

                            Cr Treasury stock       4320

           (To record sales of shares less cost)

ehidna [41]3 years ago
4 0

Answer:

The necessary journal entries to record the issues and repurchase of common stock are included in the attached spreadsheet

Explanation:

It is noteworthy that the price of $9 is the par value of common stock ,which implies that any issue at a price beyond that has its issue price comprises of the par value of $9 and the remainder as paid-in capital in excess of par value.

Download xlsx
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Andrea's Kitchen is a catering business that operates by means of its own website. Customers order party platters, pastries, and
valkas [14]

Answer:

D) Direct Channel

Explanation:

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  Andrea's Kitchen Catering Services offers the way of direct distribution because they do not make use of middlemen in order to deliver goods to their customers. The food leaves their kitchen(place of production) and straight to the consumer's abode. One major advantage of this way of distribution is the easy access and quality communication between the manufacturer and the consumers.

7 0
3 years ago
Adjusting Entries and Adjusted Trial Balances
Artist 52 [7]

Answer:

Emerson Company

1. Adjusting Journal Entries

Debit Insurance expense $2,190

Credit Prepaid Insurance $2,190

To record expired insurance expense for the year.

Debit Supplies expense $1,270

Credit Supplies $1,270

To record supplies expense for the year.

Debit Depreciation expense of building $2,950

Credit Accumulated depreciation - building $2,950

To record depreciation expense for the year.

Debit Depreciation expense of equipment $2,550

Credit Accumulated depreciation - equipment $2,550

To record depreciation expense for the year.

Debit Unearned rent $4,690

Credit Rent Revenue $4,690

To record rent earned for the year.

Debit Salaries and wages Expense $2,880

Credit Salaries and wages payable $2,880

To record accrued salaries and wages.

Debit Accounts receivable $16,910

Credit Fees earned $16,910

To record fees earned but unbilled.

2. Adjusted Trial Balance as of October 31, 20Y6

Emerson Company

Adjusted Trial Balance  as of October 31, 20Y6

                                                   Debit           Credit  

Cash                                         $3,930

Accounts Receivable              52,550

Prepaid Insurance                     4,450

Supplies                                        540

Land                                       104,800

Building                                269,090

Accumulated Depreciation—Building             $131,010

Equipment                            125,950

Accumulated Depreciation—Equipment          93,760

Accounts Payable                                                11,180

Salaries and Wages Payable                              2,880

Unearned Rent                                                    1,650

Suzanne Emerson, Capital                            285,400

Suzanne Emerson, Drawing 13,890

Fees Earned                                                    318,940

Rent Revenue                                                    4,690

Salaries & Wages Expense 182,890

Utilities Expense                  39,570

Advertising Expense             21,140

Repairs Expense                   16,010

Miscellaneous Expense        5,740

Insurance Expense                2,190

Supplies Expense                  1,270

Depreciation Exp. Building  2,950

Depreciation Exp. Equip.     2,550

Totals                              $849,510            $849,510

Explanation:

a) Data and Calculations:

Emerson Company

Unadjusted Trial Balance  as of October 31, 20Y6

                                                   Debit           Credit  

Cash                                         $3,930

Accounts Receivable              35,640

Prepaid Insurance                     6,640

Supplies                                       1,810

Land                                       104,800

Building                                269,090

Accumulated Depreciation—Building           $128,060

Equipment                            125,950

Accumulated Depreciation—Equipment           91,210

Accounts Payable                                                11,180

Unearned Rent                                                   6,340

Suzanne Emerson, Capital                           285,400

Suzanne Emerson, Drawing 13,890

Fees Earned                                                 302,030

Salaries & Wages Expense 180,010

Utilities Expense                  39,570

Advertising Expense             21,140

Repairs Expense                   16,010

Miscellaneous Expense        5,740

Totals                              $824,220          $824,220

Adjustments:

Prepaid Insurance balance = $4,450

Insurance expense = $2,190 (6,640 -4,450)

Supplies balance = $540

Supplies expense = $1,270 (1,810 - 540)

Depreciation expense of building = $2,950

Accumulated depreciation - building = $131,010 (128,060 + 2,950)

Depreciation expense of equipment = $2,550

Accumulated depreciation - equipment = $93,760 (91,210 + 2,550)

Unearned rent = $1,650

Rent Revenue = $4,690 (6,340 - 1,650)

Salaries and wages payable = $2,880

Salaries and wages = $182,890 (180,010 + 2,880)

Accounts receivable = $52,550 (35,640 + 16,910)

Fees earned = $318,940 (302,030 + 16,910)

3 0
2 years ago
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,
ANTONII [103]

Answer:

Incremental income as scrap=$66,500

Incremental income when re-worked= $81,700

Explanation:

Unit contribution from selling as scrap is the equal to the scrap value = 3.50

Unit contribution when reworked and sold as scrap =Selling price - cost of re-work= $8.90-4.60= $4.3

Incremental income as scrap = $3.50×19,000= $66,500

Incremental income when re-worked= $4.3 × 19,000 = $81,700

Incremental income as scrap=$66,500

Incremental income when re-worked= $81,700

5 0
3 years ago
You have found an asset with an arithmetic average return of 14.60 percent and a geometric average return of 10.64 percent. Your
Ksju [112]

Answer:

return of the asset =  13.94%

return of the asset =  13.11%

return of the asset = 11.46 %

Explanation:

given data

average return = 14.60 percent

geometric average return = 10.64 percent

observation period = 25 years

solution

we get here return of the asset over year  by Blume formula that is

return of the asset = ( T- 1 ) ÷ ( N - 1)  × geometric average + ( N -T)  ÷ ( N - 1)  × arithmetic average   ..................1

here N is observation period and T is time

put value in equation 1

return of the asset = \frac{5-1}{25-1} *0.1064 + \frac{25-5}{25-1} * 0.1460

return of the asset = 0.1394 = 13.94%

and

return of the assets = \frac{10-1}{25-1} *0.1064 + \frac{25-10}{25-1} * 0.1460

return of the asset = 0.13115 = 13.11%

and

return of the assets = \frac{20-1}{25-1} *0.1064 + \frac{25-20}{25-1} * 0.1460

return of the asset = 0.11465 = 11.46 %

6 0
3 years ago
Engler Company purchases a new delivery truck for $55,000. In addition, the sales taxes are $4,000. Engler also paints on the lo
uysha [10]

Answer:

$61,390

Explanation:

Calculation to determine What does Engler record as the cost of the new truck

Using this formula

Cost of new truck=Purchase price+Sales tax, painting +Logo on the side of the truck +Safety testing +Tune up and oil change

Let plug in the formula

Cost of new truck=$55,000 + $4,000 + $1,600 + $290 +$500

Cost of new truck= $61,390

Therefore what Engler will record as the cost of the new truck is $61,390

6 0
2 years ago
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