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2 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]2 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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Mira Mesa Appliances makes and sells kitchen equipment for offices and hotel rooms. Mira Mesa management believes that a new mod

lys-0071 [83]

Answer:

$126

Explanation:

We can calculate the amount Mira can pay for the synthetic material per unit (refrigerator) and meet its profitability goal by deducting the estimated profit and then all the cost from the selling price per unit.

Selling price per unit $260

Less

estimated return (260x30%) = ($78)

Labor costs ($32)

Overhead costs ($24)

Material $126

Amount Mira can pay for Synthetic material per unit is $126

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2 years ago

Differential Analysis for a Lease or Buy Decision Sloan Corporation is considering new equipment. The equipment can be purchased

Arlecino [84]

Answer:

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

Explanation:

Alternative 1 (lease):

less price per year $30,000 x 5 years = $150,000

Alternative 2 (purchase):

initial investment = $125,500 + $1,600 = $127,100

maintenance cost per year = $2,500 x 5 years = $12,500

<h2> Differential Analysis</h2>

alternative 1 alternative 2 differential

lease purchase effect

Revenues $0 $0 $0

Costs:

Purchase price $0 -$125,500 -$125,000

Freight and installation $0 -$1,600 -$1,600

Repair and maintenance $0 -$12,500 -$12,500

(5 years)

Lease -$150,000 $0 $150,000

(5 years)

Income / loss -$150,000 -$139,600 <u>$10,400</u>

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

4 0

3 years ago

The general common law rule on contract modifications holds that an agreement to modify an existing contract requires a(n):

dlinn [17]

<span>agreement to modify an existing contract would be the answer</span>

8 0

2 years ago

Choose the correct statement. A. Income tax creates a deadweight loss in the markets for capital and labor. B. Income tax is a t

mixer [17]

Answer:

The correct answer is option A.

Explanation:

Income tax is a tax imposed by the government on the income earned by the individuals. This income can be from capital and labor. It creates a deadweight loss in the market for labor and capital.

Deadweight loss is the loss to economic efficiency and production caused by a tax. The imposition of a tax creates a tax wedge, this tax wedge leads to a deadweight loss. Deadweight loss due to income tax is the loss of purchasing power or reductions standard of living due to tax.

The inefficiency or tax burden depends upon the elasticities of demand and supply. Whoever has the least elasticity will share most of the tax burden.

7 0

3 years ago

When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts

PSYCHO15rus [73]

Answer:

True

Explanation:

statement of cash flows can be regarded as financial statement which gives analysis of how cash as well as cash equivalent is affected by any changes in balance sheet accounts.

The indirect method of statement of cash flows begins with loss or the net income as well as the substraction of values from non cash revenue which result in case flow as a result of operating activities.

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2 years ago