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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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dolphi86 [110]

Contribution for Standard is $30 per unit and Supreme is $60 per unit, Thus if Fixed expenses are first divided between the two products on the basis of Contribution per unit, It can be calculated as below:

Fixed Expense Bifurcated on basis of Contribution per unit= 30:60

Which Comes to 1:2

Thus it will be bifurcated as $1200000 for Supreme and $600000 for Standard

Thus for Standard to break even it Requires to Sell the below no of units:

Break Even Point in units=\frac{Fixed Expense}{Contribution per unit}

Break Even Point in units=\frac{600000}{30}

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7 0
3 years ago
Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are al
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From maintenance to department B will be allocated 85,333 dollars

Explanation:

We distribute maintenance over personnel and operating and then,

we distributed the accumulated in personnel over the operating department:

\left[\begin{array}{cccccc}&Maintenance&Personnel&Dep A&Deb B\\$maintenance-hours&&800&960&640\\$employes&&&160&480\\$Direct \: Cost&320,000&80,000&160,000&240,000\\$Allocate A&-320,000&106,667&128,000&85,333\\$Subtotal&&186,667&288,000&325,333\\$Allocate J&&-186,667&46,667&140,000\\$Total&&&334,667&465,333\\\end{array}\right]

<em><u>For the given question it would be:</u></em>

total maintenance-hours: 800  + 960 + 640 = 2,400

<u>allocation of maintenance:</u>

320,000 x   640/2400 = 85,333

4 0
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Oreva, a multinational corporation, pays $100,000 per year to an information technology firm to archive and secure all of its da
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Answer:

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Storage cost -

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4 0
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Answer:

yes

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