1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nastasia [14]
3 years ago
12

On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 74,000 shares authori

zed, issued, and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 226,000 Retained earnings 880,000 Total stockholders’ equity $ 1,846,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 5,200 shares of its own common stock at $27 per share on October 11. Sold 1,050 treasury shares on November 1 for $33 cash per share. Sold all remaining treasury shares on November 25 for $22 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.
Business
1 answer:
uysha [10]3 years ago
5 0

Answer:

1,                            Journal entries

Date    Account and explanation         Debi$       Credit$

          Treasury stock (5200*27)          140,400

           Cash                                                              140,400

           (To record purchase treasury stock)

            Cash (1,050*33)                           34,650  

            Paid in capital from sale of treasury stock    6,300

            Treasury stock (1,050*27)                               28,350

             (To record sale of treasury stock)  

              Cash (4,150*22)                             91,300

              Paid in capital from sale of            6,300

              treasury stock  

              Retained earnings                         14,450

              Treasury stock (4,150*27)                                112,050

              (To record sale of treasury stock)  

2.  Revised equity section

<u>Contributed capital</u>

Common Stock                             740,000

Paid in capital in excess of           <u>226,000</u>

par value-Common Stock

Total paid in capital                        966,000

Retained earnings                         <u> 880,000</u>

Total                                                1,846,000

Less: Treasury stock                      <u>(140,400)</u>

Total Stockholder's equity            $<u>1,705,600</u>

You might be interested in
Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is resp
Vika [28.1K]

Answer:

a. $24,000

Explanation:

60,000 fixed cost which, are allocated in the base of expected copies:

total expected copies: 600,000 + 400,000 = 1,000,000

Copy Center 2 represent 400,000 / 1,000,000 = 40% of the total copies volume for the period

Therefore from the 60,000 fixed cost the 40% was applied.

60,000 x 40 % = 24,000

7 0
3 years ago
Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financi
Arte-miy333 [17]

Answer:

Explanation: Subtract from net income to arrive at net cash flows from operating activities.

3 0
3 years ago
Cheryl was balancing the Trial Balance of the company. She found that the debit balance totaled $73,000 and the credit balance w
klio [65]
I think it is both sides

4 0
3 years ago
Read 2 more answers
On July 1, 2020, Dobbs Co. pays $14,400 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal year
Anarel [89]

Answer:

July 1,2020

Dr Cash $ 14,400

Cr Unearned Service Revenue $ 14,400

December 31,2020

Dr Unearned Service Revenue $ 2,400

Cr Service Revenue $ 2,400

Explanation:

Preparation of the journal entry for July 1 and the adjusting entry on December 31 for Kalter Insurance Co

Based on the information given the journal entry for July 1 will be :

July 1,2020

Dr Cash $ 14,400

Cr Unearned Service Revenue $ 14,400

(Being to record Unearned Service Revenue )

Based on the information given the Journal entry for December 31,2020 will be :

December 31,2020

Dr Unearned Service Revenue $ 2,400

Cr Service Revenue $ 2,400

[ ( $14,400 / 36 Months) * 6 ]

(Being to record Service revenue earned)

Note that 3 years will give us 36 months (12month*3) and July 1,2020 to December 31 will give us 6 months.

3 0
2 years ago
Bull'sEye sells gift cards redeemable for Bull'sEye products either in-store or online. During 2016, Bull'sEye sold $2,000,000 o
alekssr [168]

Answer:

b) $1,950,000

Explanation:

Value of gift cards redeemed with those whose date of redemption has passed, will both have the amount to revenue out of $2,000,000 of the gift cards sold.

Total gift card revenue to be recognized in 2016 = $1,800,000 + $150,000

Total gift card revenue to be recognized in 2016 = $1,950,000

4 0
3 years ago
Other questions:
  • a machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. WHa
    8·1 answer
  • True or False: The State of Florida will revoke your license if you are found guilty of committing a felony for drug possession.
    5·2 answers
  • Adidas decides to invest $100,000,000 into a shoe factory in Vietnam from its money market account. The money market account was
    8·1 answer
  • Cado Co.'s payroll for the month ended January 31 is summarized as follows:Total wages $100,000Amount of wages subject to payrol
    14·1 answer
  • A country redesigned its tax policy so that the tax rate was reduced for individuals earning larger amounts of money. For exampl
    5·2 answers
  • Assume that the interest rate is 4% compounded monthly. Roy buys 100 shares of Moogle company, at the market price of $30 per sh
    9·1 answer
  • Lincoln Corporation, a U.S. corporation, owns 50% of the stock of a controlled foreign corporation (CFC). At the beginning of th
    5·1 answer
  • Which of the following aspects of the sales process is most likely to make or break a sale?
    6·1 answer
  • What is the total return for a stock that currently sells for $100, pays a dividend in one year of $2, and has a constant growth
    8·1 answer
  • true or false. gold and silver futures markets obey the cost-of-carry model (2) use the following information to formulate a pre
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!