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stich3 [128]
3 years ago
13

The corporate charter of Torres Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. D

uring its first three years of operation, Torres issued 2,080,000 shares at $15 per share. It later acquired 80,000 of these shares as treasury stock for $25 per share.
Instructions

Based on the above information, answer the following questions:

(a) How many shares were authorized?

(b) How many shares were issued?

(c) How many shares are outstanding?

(d) What is the balance of the Common Stock account?

(e) What is the balance of the Treasury Stock account?

2) Miles Co. had these transactions during the current period.

June 12 Issued 50,000 shares of $3 stated value common stock for cash of $250,000.

July 11 Issued 2,000 shares of $100 par value preferred stock for cash at $108 per share.

Nov. 28 Purchased 2,000 shares of treasury stock for $10,000.

Instructions

Prepare the journal entries for the preceding transactions.
Business
1 answer:
sergey [27]3 years ago
6 0

How many shares were authorized?

Number of shares authorized are 4,000,000

--------

How many shares were issued?

Number of shares issued are 2,080,000

--------

How many shares are outstanding?

Number of shares outstanding = Number of shares issued - Numberof shares repurchased

Number of shares outstanding = 2,080,000 - 80,000

Number of shares outstanding = 2,000,000

--------

What is the balance of the Common Stock account?

Balance of common stock = Number of shares issued * Parvalue

Balance of common stock = 2,080,000 * $1

Balance of common stock = $2,080,000

--------

What is the balance of the Treasury Stock account?

Balance of treasury stock = Number of shares repurchased * Priceper share

Balance of treasury stock = 80,000 * $25

Balance of treasury stock = $2,000,000

--------

2)

June 12:  Issued 50,000 shares of $3 stated value common stock for cash of $250,000.

Cash; 250,000

Paid-In Capital in Excess of Par--Common Stock 50,000 x 3 = 150,000

Common Stock: 100,000

July 11:  Issued 2,000 shares of $100 par value preferred stock for cash at $108 per share.

cash: 2000 x 108 = 216,000

preffered stock : 2,000 x 100 = 200,000

Paid-In Capital in Excess of Par--Preferred Stock : 16,000

Nov. 28: Purchased 2,000 shares of treasury stock for $10,000.

Treasury Stock 10,000

Cash 10,000

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kramer

Answer:

(b) a loss of $750

Explanation:

Given;

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Now,

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= Amount of spice mixture to be purchased × Price of spice mixture in 2014

= 1500 × $5.00

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and,

The amount to be received in 2015

= Amount of spice mixture to be purchased × Price of spice mixture in 2015

= 1500 × $4.50

= $6,750

The difference in Expected amount and the amount to be received

= $7500 - $6750

= $750

Since the amount to be received is less than the expected amount on the day of contract

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a loss will be recognized

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the correct answer is option (b) a loss of $750

5 0
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After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $
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Answer:

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In the given case clever auto services has debit balance of $5,300 i,e it implies that clever auto services has loss .

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Radoski Corporation's bonds make an annual coupon interest payment of 7.35% every year. The bonds have a par value of $1,000, a
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Answer:

YTM = 0.6940%

Explanation:

THe Yield to Maturity (YTM) is the return that you expect from the bond if you held the bond till maturity.

The formula would go as:

YTM = \frac{F}{P}^{\frac{1}{n}} -1

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Given,

F = 1000

P = 920

n = 12, we have:

YTM = \frac{F}{P}^{\frac{1}{n}} -1 = \frac{1000}{920}^{\frac{1}{12}} -1=0.006972

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5 0
3 years ago
Analysis reveals that a company had a net increase in cash of $22.420 for the current year. Net cash provided by operating activ
antoniya [11.8K]

Answer: 4,840

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Therefore,

The year-end cash balance -  the beginning cash balance = $22,310

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8 0
2 years ago
So you can retire early, you have decided to start saving $500 a month starting one month from now. You plan to retire as soon a
Mashcka [7]

Answer:

It will take him 45 years

Explanation:

In this question, we are asked to calculate the number of years it would take to accumulate $1,000,000 if there is a plan to save $500 per month at an interest rate of 5%.

To solve this, we use the following mathematical formula:

Future value of annuity = Annuity payment * {(1+r)^n - 1}/r

Where r is the monthly interest rate and n is the number of months it will take.

From the question, we can identify the following;

Since he earns 5% interest on savings, the actual monthly interest rate will be 5%/12 = 0.4167% = 0.004167

Annuity payment = monthly payment = $500

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We substitute these values into the equation:

1,000,000 = 500 * [(1+0.004167)^n - 1]/0.004167

8.334 = (1.004167)^n - 1

1+8.334 = (1.004167)^n

9.334 = (1.004167)^n

To get n, we simply take the log on both sides of the equation

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n = Log9.334/Log1.004167

n = 537 months

Question asks to calculate in years

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8 0
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