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JulsSmile [24]
3 years ago
8

Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. 11) The firm has 55,000 shares of stock

outstanding that sell for $11 a share. What is amount of market value added?
A) $474,000
B) $389,000
C) $1,073,000
D) $123,712
Business
1 answer:
vovikov84 [41]3 years ago
6 0

Answer:

A) $474,000

Explanation:

Since Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000, it means that equity should be $131,000.

The current price of Balsco's stock is $11 per share and total shares outstanding are 55,000, which results in a total market value of $605,000. If you subtract total equity from the total market value = $605,000 - $131,000 = $474,000

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<u>Journal entry to record the purchase the bags of insultaion.</u>

Date            Particulars                                  Debit                       Credit

                 Inventory                                       $6875

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(Purchased insulated bags from Glassco Inc., 1250bags at the rate $5.5 each)

<u>entry to record the payment for shipping</u>

                Inventory                                          $320

                   cash                                                                           $320

( paid shipping charges for bags to warehouse)

<u>entry for return of the defective bags</u>

              accounts payable                                 $275

                   Inventory                                                                       $275

( returned defective bags to glassco Inc)

<u>To record the payment for the bags kept by compass.</u>

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( payment for remaining bags to Glassco Inc., )

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