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storchak [24]
3 years ago
11

A corporation purchases 1,000 shares of its own common stock for $4,000 on Feb. 13. On April 13, half of the treasury stock was

sold for $3,000. On April 26, the other half of the treasury stock was sold for $1,800. The entry to record the April 26 sale would include
i. a debit to Paid-in Capital from the Sale of Treasury Stock for $200.
ii. a credit to Cash for $1,800.
iii. a debit to Treasury Stock for $2,000.
iv. a credit to Paid-in Capital from the Sale of Treasury Stock for $1,200.
What is the total stockholders' equity based on the following data?
Common Stock $900,000
Excess of Issue Price Over Par 375,000
Retained Earnings (deficit) 50,000
a. $1,275,000
b. $900,000
c. $1,225,000
d. $1,325,000
Business
1 answer:
koban [17]3 years ago
3 0

Answer:

d. $1,325,000

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
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4 0
2 years ago
Landmoon Inc. has 10,800 shares of common stock outstanding at a price of $42 per share. It also has 245 shares of preferred sto
zhuklara [117]

Answer:

 0.0210

Explanation:

The computation of the weight of the preferred stock is shown below:

Particulars Shares    Price Value ( Shares × Price)   Weight ( Value ÷Total value)

Equity 10,800   $42         $4,53,600                0.4179

Preferred Stock 245 $93         $22,785                        0.0210

Bonds 580           $1,050         $6,09,000                0.5611

Total value                                     $1,085,385

for computing the weight we simply divide the value of the preferred stock with the total value

4 0
3 years ago
Southern california publishing company is trying to decide whether or not to revise its popular textbook, financial psychoanalys
steposvetlana [31]

If the company requires a return of 10 percent for such an investment, calculate the present value of the project.

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We then calculate the Present Value Interest Factor (PVIF) at 10% for four years using the formula :

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Next, we find the product of the respective cash flows and PVIF for each year.

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3 years ago
A salesman at a music store always begins by showing his customers high-priced instruments. When the customers refuse these, the
quester [9]

Answer: Rejection-then-retreat approach.

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4 0
3 years ago
Read 2 more answers
Monogramm just paid a dividend of $2.19 per share. The company said that it will increase the dividend by 15 percent and 10 over
valentinak56 [21]

Answer: $38.03

Explanation:

Based on the information given in the question, dividend for first year will be:

= D1 = $2.19 × 1.15 = $2.5185

D2= $2.5185 × 1.1 = $2.77035

Then, we calculate the value after year 2 which will be:

=(D2 × Growth Rate) / (Required Return-Growth Rate)

=(2.77035 × 1.037) / (0.107-0.037)

=$41.04

Therefore, the stock price today will be:

= (2.5185/1.107) + (2.77035/1.107²) + (41.04)/1.107²

=$38.03

7 0
3 years ago
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