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Kipish [7]
3 years ago
9

Refer to the following information for Tolan​ Corporation: bullet Common​ Stock, $1.00​ par, 106,000 shares​ issued, 100,000 sha

res outstanding bullet ​Paid-In Capital in Excess of Parlong dash​Common: ​$2,190,000 bullet Retained​ Earnings: $920,000 bullet Treasury​ Stock: 6,000 shares purchased at​ $21 per share If Tolan resold​ 2,500 shares of treasury stock for​ $22.50 per​ share, which of the following statements would be​ true?
A

The Treasury Stock account would decrease by​ $52,500.

B.

The Retained Earnings account would increase by​ $56,250.

C.The​ Paid-In Capital in Excess of

Parlong dash—Common

account would increase by​ $2,500.

D.

The Treasury Stock account would decrease by​ $26,250.
Business
1 answer:
ra1l [238]3 years ago
8 0

Answer:

Option (A) is correct.

Explanation:

Journal entry at time of selling treasury stock :

Cash A/c                     Dr.  $56,250

To  Treasury stock                               $52,500    

To  Paid in capital in excess of par     $3,750

Workings:

cash = 2,500 × 22.5

        = $56,250

Treasury stock = 2,500 × $21

                         = $52,500  

Paid in capital in excess of par = 2,500 × $1.5

                                                   = $3,750

Therefore, this will conclude that

Treasury stock will decrease by $52,500.

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Under GASB standards, financial information useful for assessing operational accountability is primarily reported in which finan
ANEK [815]

Answer: b. Yes; No

Explanation:

The Government Accounting Standards Board (GASB) is simply a non-governmental organization which is private that helps in the creation of accounting reporting standards, for both states in the United States and the local governments.

Under GASB standards, financial information useful for assessing operational accountability is primarily reported in the Government wide financial statements and not the Fund Financial statements.

7 0
3 years ago
if variable cost increases by $1/unit, advertising cost increases by $1,500, and units sales increase by 250, what would be the
stira [4]

Revised Sales revenue (1,000 + 150 units = 1,150 * $35)           $40,250

Less: Reised Variable costs ($21 + $1 = $22 * 1,150)                  ($25,300)

Revised Contribution Margin                                                   $14,950

Less: Revised Fixed costs ($8,400 + $1,250)                          ($9,650)

Net operating income                                                                   $5,300

Fixed costs remain the same for a period of time. Variable costs increase or decrease depending on the performance of the company. Examples of fixed costs are rent, taxes, and insurance premiums.

Variable costs are costs that change with changes in quantity. Examples of variable costs include raw materials, parts labor, production materials, handling charges, shipping charges, packaging materials, and credit card fees. In some fiscal documents, the variable cost of production is called the "cost of goods sold."

Learn more about Variable costs at

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4 0
1 year ago
Miracle Clean's variable costs are $3.00 per bottle and Fixed Expenses are $350,000 per year. The company currently sells 150,00
DerKrebs [107]

Answer:

131,250= number of units

Explanation:

Giving the following information:

<u>We need to calculate the number of units to be sold to maintain a profit of $175,000.</u>

Unitary variable cost= $3

Fixed expenses= $350,000

Selling price= $7

Net income= total contribution margin - fixed cost

175,000= number of units*(7 - 3) - 350,000

525,000 = number of units*4

525,000 / 4= number of units

131,250= number of units

7 0
3 years ago
Can estimate wind speed and predict precipitation by use of radio waves.
Leona [35]
The answer would be the Doppler Radar

The Doppler Radar used some sort of microwave signal to analyze the motions that happened by checking how much the motion altered its frequency. Doppler Radar is most commonly used in weather forecast or meteorology unit
6 0
3 years ago
The Income Statement is also known as the company's financial condition at a specific point in time. A : True B : False
sukhopar [10]

Answer:

A : True

Explanation:

  • The income statement is also called as a profit and a loss statement and is called a revenue statement and is transformed into the net income and the net profits and is to show the managers and the investor whether the company is making a profit and represent over a period of time.
3 0
3 years ago
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