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3 years ago

The journal entry to record the sale of treasury stock might include all of the following except for:

Business

1 answer:

Ghella [55]3 years ago

4 0

Answer:

b. a debit to Paid-In Capital from Sale of Treasury Stock.

Explanation:

Treasury stock is the stock of equity purchased by the company itself, from open market. Basically it has a debit balance. And it is shown as a negative value from common equity in the balance sheet.

Now when there is sale of such treasury stock, this treasury stock will be credited, also in next entry common stock will be credited as it will increase automatically therefore in no circumstances Paid in capital will be debited from sale of treasury Stock.

Final Answer

b. a debit to Paid-In Capital from Sale of Treasury Stock.

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Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% a

Sonja [21]

Answer:

D) CM per unit: Increases

CM ratio: No change

BE in units: Decreases

Explanation:

Let us suppose that

In the first case

The selling price per unit is $100

And, the variable cost per unit is $50

The fixed expense is $100,000

So, the contribution margin per unit

= $100 - $50

= $50

The CM ratio is

= $50 ÷ $100

= 50%

And, the break even point in units is

= $100,000 ÷ $50

= 2,000 units

Now if the selling price per unit and the variable expense per unit both increase by 10%

So,

The selling price per unit is $100 × 1.10 = $110

And, the variable cost per unit is $50 × 1.10 = $55

The fixed expense is $100,000

So, the contribution margin per unit

= $110 - $55

= $55

The CM ratio is

= $55 ÷ $110

= 50%

And, the break even point in units is

= $100,000 ÷ $55

= 1,818 units

Hence, the last option is correct

8 0

3 years ago

A firm has the following gross requirements for Item OF. Ordering costs are $60 per order and carrying costs are $0.50 per perio

aleksley [76]

Answer:

c. 120

Explanation:

The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The formula for Economic order quantity is represented by the formula:

EOQ = $\sqrt{\frac{2*Demand*Ordering Cost}{Holding cost} }$

EOQ = $\sqrt{\frac{2*240*60}{0.5} }$

EOQ = 120

5 0

3 years ago

If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then

vaieri [72.5K]

Option C

If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is: adaptive.

<u>Explanation:</u>

Adaptive expectations hypothesis implies that investors will modify their expectations of future behavior based on current prior behavior. In finance, this impact can effect people to produce investment decisions based on the way of contemporary historical data, such as stock price activity or inflation rates, and modify the data to prophesy future exercise or rates.

If the market has been trending downward, people will possible expect it to proceed to trend that way because that is what it has been acting in the recent past.

7 0

3 years ago

The population of the Republic of Butters is 165.

Anna11 [10]

Answer:

165 / 130

165 /25

divide and get your answer

7 0

3 years ago

Pina Colada Furniture factors $670000 of receivables to Sheffield Factors, Inc. Sheffield Factors assesses a 2% service charge o

Reika [66]

Answer and Explanation:

The journal entry is shown below;

Cash $656,600

Factoring charges (2% of $670,000) $13,400

To Trade Receivables $670,000

(Being recording these receivables)

Here cash and factory charges is debited as it increased the assets and expense while the trade receivable is credited as decreased the assets

3 0

3 years ago