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
Free_Kalibri [48]
3 years ago
15

The balance sheet of Messi Services included the following shareholders' equity section at December 31, 2018: ($ in millions) Co

mmon stock ($1 par, authorized 200 million shares, issued and outstanding 180 million shares) $ 180 Paid-in capital—excess of par 1,080 Retained earnings 560 Total shareholders’ equity $ 1,820 On January 5, 2019, Holmes purchased 2 million treasury shares for $9 million. Immediately after the purchase of the shares, the balances in the paid-in capital- excess of par and retained earnings accounts are: Paid-in capital—excess of par Retained earnings a. $ 1,068 $ 556 b. $ 1,064 $ 560 c. $ 1,080 $ 560 d. $ 1,080 $ 544
Business
2 answers:
Yuri [45]3 years ago
6 0

Answer: The answer is c $1,080 $560

Explanation:

The journal entry will be

Dr: common stock $200 million

Dr: paid in capital $180 million

In the stockholders equity section , the treasury stock is seen as a separate line item in the stockholders equity. The treasury stock will be deducted from the total stockholders equity. The treasury stock is not a part of paid in capital nor part of the retained earning.

Therefore the balance in the paid in capital excess of par Retained Earnings is 1,080 $560

Lady_Fox [76]3 years ago
4 0

Answer:

             a.$1068 $556

Explanation:

The treasury shares are sold below par value therefore it will reduce equity.

The reduction will be recorded as=$1,080/180=$6 per share

When 2 million shares are sold=$6*2=$12

Paid up capital in excess of par will be =$1,080-$12=$1,068

Retained Earnings=$560-$4=$556

Please note that treasury shares are always part of common stock.

You might be interested in
You work in the Accounting department and have been using a network drive to post Excel workbook files to your file server as yo
vichka [17]

Answer:

1 st - Save the workbook file to your hard drive - saving things first is always good.

2nd - Ask your network administrator to give you permission to access the folder - of course you need permission so you have to ask.

5 0
3 years ago
The great disparity in economic prosperity between north and south korea can best be explained by the​ _____________.
Diano4ka-milaya [45]
Political and economic system differences
5 0
3 years ago
volume_upclosed_captiondescriptionfullscreen According to Mikey, the founder of Holden Outerwear, manufacturing products at five
Ad libitum [116K]

Answer: a. increased paperwork at every step of the shipping process.

Explanation:

There is no excerpt attached but this should be the answer.

Having five different factories in China means that Holden Outwear would have to transport things to and fro all five factories including raw materials, intermediate goods and finished goods.

This represents a lot of shipping and shipping comes with paperwork. It would therefore be no surprise if the Holden Outwear is having to go through the bane of increased paperwork for manufacturing at five different factories.

6 0
3 years ago
George Jefferson established a trust fund that provides $170,500 in scholarships each year for worthy students. The trust fund e
Aleonysh [2.5K]

The returns of a capital amount to a compensation rate for depositing the money, to calculate these returns an interest rate is used by which the deposited capital is multiplied, in this case the rate is 4%.

As the money distributed is only the product of interest, then that money is the result of multiplying the capital by the interest rate, to obtain how much money Mr. Jefferson contributed, the reverse process will have to be done.

Answers

let <em>C</em> be the capital, then :

C\times4 \%  = 170500\\C\times\frac{4}{100}= 170500\\C=170500\times\frac{100}{4}\\C=4262500

The capital contributed by Mr. Jefferson was <em>$4,262,500</em>

3 0
3 years ago
Read 2 more answers
The investment most affected by local conditions is:
Tems11 [23]

Savings accounts . . .
     interest rates are most determined by the state of
         the national economy.

Mutual funds . . .
Treasury bills . . .
     traded on nationwide exchanges; prices and returns
        are pretty uniform nationwide.

Real estate . . .
     rests directly on local conditions in each city, and sometimes even in
        different parts of the same city;
     affected by things like local unemployment, local bad weather,
        local price of gas, local tourism, local special events, etc.

4 0
3 years ago
Read 2 more answers
Other questions:
  • Assume a company's Income Statement for Year 12 is as follows Year 12 in 000s Income Statement Data Net Revenues from Footwear S
    14·1 answer
  • Suppose you have a machine which executes a program consisting of 60% floating point multiply, 20% floating point divide, and th
    5·1 answer
  • Which careers require a person to be confident when speaking in front of audiences?
    6·2 answers
  • Aspen Ore purchased a vein of coal ore for $5,300,000. It is estimated that 32,000,000 tons of ore are available to be extracted
    6·1 answer
  • What is the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory?
    10·1 answer
  • Alt Corporation enters into an agreement with Yates Rentals Co. on January 1, 2021 for the purpose of leasing a machine to be us
    13·1 answer
  • Mr. Capadona would like to purchase a Medicare Advantage (MA) plan and a Medigap plan to pick up costs not covered by that plan.
    8·1 answer
  • A structure was built five years ago. Because of exceptional upkeep, the appraiser estimates the structure's condition today to
    12·1 answer
  • A $150 debit to office equipment was entered in the account as a $150 credit. this error caused the trial balance to be out of b
    5·1 answer
  • iven that jacob's chocolates had owner investments of $4,000; net income during the period of $10,000; and owner withdrawals of
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!