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3 years ago

Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:

Business

1 answer:

KiRa [710]3 years ago

5 0

Answer:

The first transaction is that 10 million shares are being reacquired at 32.50 per share so we need to find out how much cash is spent to buy these shares.

32.5*10 million = $325 million

We will debit treasury stock and credit cash because the company is buying shares from the market and paying cash

The second transaction is reacquiring 10 million shares at 36 per share so we need to find how much cash is spent

10 million *36= $360 million

We will debit treasury stock and credit cash because the company is buying shares from the market and paying cash

In the third transaction 1 million shares are being sold for 42, so need to figure out how much cash the company gets from the transaction

42* 1 million = 42 million

We will debit cash and credit common stock as the company is issuing shares to the market and getting cash for it

In the fourth transaction 1 million shares are being sold for 36, so need to figure out how much cash the company gets from the transaction

36* 1 million = 36 million

We will debit cash and credit common stock as the company is issuing shares to the market and getting cash for it

Journal entries

Debit Credit

Treasury stock 325 million

Cash 325 million

Treasury stock 360 million

Cash 360 million

Cash 42 million

Common stock 42 million

Cash 36 million

Common stock 36 million

Explanation:

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Suppose that a mortgage bank locked in an interest rate for a prospective borrower at 8.5%. However, prior to the loan closing,

m_a_m_a [10]

Answer:

Reinvestment risk

Explanation:

The mortgage banker would be most concerned about reinvestment risk, among other risks. Reinvestment risk relates to the inability to earn an original interest rate on an investment from periodic cash flows from the investment, thus limiting the overall rate of return on the investment.

In the question, since market mortgage rate has declined to 7.5%, the mortgage bank would have to reinvest the amount repaid from the original borrower at the new market rate, which is 1% lower than the ruling rate when the original borrower took the loan.

The problem would be compounded if the cost of funding to the mortgage bank was, for instance 8%. If that was the case, on the original loan, the mortgage bank was earning a (8.5% less 8% cost of funding =) 0.5% on the loan. However, due to the decline in market rates, the mortgage bank would have a cost of 8% compare to a market rate of 7.5% it would earn, thus resulting in a negative return of 0.5%.

3 0

3 years ago

A risk management assessment is a systematic and methodical evaluation of the security posture of the enterprise.

Korolek [52]

Answer: false

Explanation:

Vulnerability assessment is defined as the systematic and methodical evaluation of security posture of the enterprise. It is used to expose the assets to the things that can harm them.

The steps that are involved in vulnerability assessment are the identification of asset, threat evaluation, the vulnerability appraisal, the risk assessment and finally the risk mitigation.

Therefore, the question is false

3 0

3 years ago

epper Department store allocates its service department expenses to its various operating (sales) departments. The following dat

ad-work [718]

Answer:

Pepper Department Store

The total advertising expense allocated to Department B is:

= $24,000.

Explanation:

a) Data and Calculations:

Expense Basis for allocation Amount

Rent Square feet of floor space $ 49,000

Advertising Amount of dollar sales $ 80,000

Administrative Number of employees $ 120,000

Department Square Feet Dollar Sales Number of employees

A 5,500 $ 355,000 31

B 5,900 $ 375,000 33

C 6,100 $ 520,000 35

Totals 17,500 $ 1,250,000 99

Advertising Expense Allocation:

Department A = $22,720 (355,000/$1,250,000 * $80,000)

Department B = $24,000 ($375,000/$1,250,000 * $80,000)

Department C = $33,280 ($520,000/$1,250,000 * $80,000)

6 0

2 years ago

Whats the estimate sum for 3/56+8/9

valentinak56 [21]

You can make 9 into a fraction with the denominator of 56.

8/9= 48/56 (multiply both by 6)

Just add three to the numerator. We can round 48 to 50, so:

50/56+3/56= 53/56 That would be the estimation.

I hope this helps!
~kaikers

4 0

3 years ago

When Mi Ola’s purchasing manager places the weekly order for new bikinis based on how many of each type have sold that week, thi

geniusboy [140]

Answer:

The process of making this decision By the CLASSICAL MODEL of decision making

Explanation:

The classical general equilibrium model was developed in the 18th century within the neoclassical economics and it is related to classical economics.

The classical general equilibrium model aims to describe the economy by taking an aggregate of the behavior of individuals and firms.

Decision taken using this Method is usually based on what the eyes are seeing. Facts.

From the text, Ola buys new bikinis weekly based on the designs the customers are buying more. He decides on what to buy for the new week by looking at the designs that his customers went for the previous week. This is a clear case of Classical model of Decision making.

5 0

3 years ago