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enyata [817]
3 years ago
10

25,000 shares reacquired by Elixir Corporation for $53 per share were exchanged for undeveloped land that has an appraised value

of $1,700,000. At the time of the exchange, the common stock was trading at $62 per share on an organized exchange. Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required\ select "No Entry" for the account titles and enter 0 for the amounts.)
Business
1 answer:
Olegator [25]3 years ago
7 0

Answer:

XX date. Acquisition of land in exchange for treasury stock.

Dr Land $1,550,000

    Cr Treasury Stock $1,325,000

    Cr Paid in Capital $225,000

Explanation:

Since the corporation uses the cost method, the transaction is recorded at purchase value regardless of current stock price.

treasury stock = 25,000 x $53 = $1,325,000

paid in capital = ($62 - $53) x 25,000 = $225,000

cost of the land = $1,325,000 + $225,000 = $1,550,000

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A dometic firm may decide to contract for the production of its goods by established foreign manufacturer. Such pricate-label ma
Monica [59]

Answer:

Contract manufacturing.

Explanation:

A domestic firm may decide to contract for the production of its goods by established foreign manufacturer. Such private-label manufacturing by a foreign company is called contract manufacturing.

Contract manufacturing involves the process of outsourcing a company's manufacturing business, such that a foreign company engages in the production of a private-label product which are then primarily marketed or distributed by a domestic company under its own brand name.

This ultimately implies that, it is a manufacturing process which involves the production of goods by a company under the brand name of another company.

8 0
3 years ago
How would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold? quest
11111nata11111 [884]
<span>how would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold ? C) The supply of smartphones would decrease. Excise taxes are based on the quantity of an item and not on its value. For example, the federal government imposes an excise tax of 18.4 cents on every gallon of gas purchased, regardless of the price charged by the seller. States often add an additional excise tax on each gallon of fuel. so, government will charged 5.00$ excise tax on smartphone will affected supply of smartphones would decrease.</span>
8 0
3 years ago
To the extent that Italian Americans have intermarried with Anglo Americans and are proportionately represented in various socie
babunello [35]

Answer:

The correct answer is (C) structural assimilation

3 0
3 years ago
Five thousand bonds with a face value of $1000 each, are sold at 110. The entry to record the issuance is
Contact [7]

Answer:

Date, bonds sold at a premium

Dr Cash 5,500,000

    Cr Bonds payable 5,000,000

    Cr Premium on bonds payable 500,000

Explanation:

The total face value of the bonds is $1,000 x 5,000 bonds = $5,000,000

since the bonds were sold at 110, their price was $5,000,000 x 110% = $5,500,000

the difference between the face value and the actual market price = $5,500,000 - $5,000,000 = $500,000 must be recorded as premium on bonds payable (increases the bonds' carrying value)

4 0
3 years ago
A tour group split into two groups when waiting in line for food at a fast food counter. The first group bought 8 slices of pizz
creativ13 [48]

Answer:

The cost of an slice of pizza is $3.94

Explanation:

Hi, we have to construct 2 equations with the information of the problem, the first one is " 8 slices of pizza and 7 soft drinks for $45.10".

8P+7D=45.10

And the second one, when "The second group bought 6 slices of pizza and 5 soft drinks for $33.34" is.

6P+5D=33.34

Where: P = pizza slices and D= soft drinks

We need to substract one equation from the other, but firs we need to equal one of the variables. In order to do so, we multiply our first equation by 5 and the second one for 7, therefore we get.

First equation

40P+35D=225.5

And the second one:

42P+35D=233.38

And now, we substract them and solve.

40P+35D-(42P+35D)=225.5-233.38

40P-42P+35D-35D=-7.88

-2P=-7.88

P=\frac{-7.88}{-2} =3.94

The cost of a slide of pizza is $3.94

In case you needed to find the cost of the soft drink, we just substitute P for 3.94 in any of the initial equations, that is:

8(3.94)+7D=45.1

7D=13.58

D=1.94

The cost of a soft drink is $1.94

Best of luck.

7 0
3 years ago
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