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rodikova [14]
3 years ago
15

March 1 Issues 49,000 additional shares of $1 par value common stock for $46 per share. May 10 Purchases 4,400 shares of treasur

y stock for $49 per share. June 1 Declares a cash dividend of $1.20 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,200 shares of treasury stock purchased on May 10 for $54 per share. Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
Ierofanga [76]3 years ago
6 0

Answer:

March 1 Issues 49,000 additional shares of $1 par value common stock for $46 per share.

Dr Cash 2,254,000

    Cr Common stock 49,000

    Cr Additional paid in capital 2,205,000

May 10 Purchases 4,400 shares of treasury stock for $49 per share.

Dr Treasury stock 215,600

    Cr Cash 215,600

Treasury stocks are recorded at purchase price against cash. It is a contra equity account that reduces stockholders' equity.

June 1 Declares a cash dividend of $1.20 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)

Dr Retained earnings 53,520

    Cr Dividends payable 53,520

Outstanding stocks = 49,000 - 4,400 = 44,600 stocks

July 1 Pays the cash dividend declared on June 1.

Dr Dividends payable 53,520

    Cr Cash 53,520

October 21 Resells 2,200 shares of treasury stock purchased on May 10 for $54 per share.

Dr Cash 118,800

    Cr Treasury stock 107,800

    Cr Additional paid in capital 11,000

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At the beginning of 2013, Barcroft Co. estimated that its total annual fixed overhead costs would amount to $25,000. Further, Ba
Varvara68 [4.7K]

Answer:

b. Products were overcosted in 2013

Explanation:

When determining the cost of a product, we consider only the Overheads Applied.

<u>Applied Overheads are calculated as :</u>

Pre-determined Overhead Rate <em>multiplied by </em>Actual Activity

<u>Predetermined Overhead Rate is calculated as follows :</u>

Budgeted Overheads <em>divided by</em> Budgeted Activity

Predetermined Overhead Rate = $25,000/2,000 units

                                                     = $ 12.50 per unit

Applied Overheads = $ 12.50 per unit × 2,200 units

                                 =  $ 27,500

The Overheads Applied are then <em>Compared to</em> Actual Overhead Cost to determine is the Overheads where Over or Under Applied

<u>Therefore our case presents the following:</u>

Applied Overheads ($ 27,500) >Actual Overheads ($25,000)

Therefore, we have an Over-Application situation.

Over-Applied Overheads are $2,500

3 0
3 years ago
For advertising strategies to be effective, they must work within the confines of the overall marketing strategy. T/F
dedylja [7]

Answer:

The correct answer is True.

Explanation:

A marketing strategy helps to create products and services with the best possibilities of obtaining benefits. This is because the marketing strategy begins with market research, taking into account the optimal target customer, what the competition is doing and what trends could be on the horizon.

Using this information, determine the benefit customers want, what they are willing to pay and how you can differentiate the product or service from the competition.

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3 years ago
If the Market Equilibrium Wage Rate is $105.00 and FC = $1500.00: A. The firm Shuts Down and hires no workers and loses $1500.00
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Answer: B. The firm hires 45 workers and earns a $1,200.00 Economic Profit

Explanation:

If the Market Equilibrium rate is $105 then the company should hire 45 workers as shown in the table.

If they did that, revenue would be $7,425

Expenses would be wages and fixed costs:

= Wages + fixed costs

= (45 workers * wage rate) + 1,500

= (45 * 105) + 1,500

= $6,225

Economic profit would be:

= 7,425 - 6,225

= $1,200

6 0
3 years ago
Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternat
Juli2301 [7.4K]

Answer:

1. Net present value of Project A = -41,449.96

2. Net present value of Project B = $143,746.85

3. I would recommend that company accept Project B.

Explanation:

Note: This question is not complete as the requirement are omitted. The requirements are therefore provided to complete the question before answering it as follows:

Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:

                                                                       Project A           Project B

Cost of equipment required                         $ 135,000                $ 0

Working capital investment required                 $ 0               $ 135,000

Annual cash inflows                                       $ 25,000           $ 63,000

Salvage value of equipment in six years        $ 9,800                $ 0

Life of the project 6 years 6 years

The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 17%.

Required:

1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)

2. Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)

3. Which investment alternative (if either) would you recommend that the company accept?

The explanation of the answers is now provided as follows:

1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)

Cost of equipment required = $135,000

Using the formula for calculating the present value of an ordinary annuity, the present value (PV) of the annual cash inflows can be calculated as follows:

PV of annual cash inflow = Annual cash inflow * (1 - (1 / (1 + discount rate))^Project life) / discount rate) = $25,000 * ((1 - (1 / (1 + 0.17))^6) / 0.17) = $89,729.62

The present value (PV) of the salvage value can be calculated as follows:

PV of salvage value = Salvage value / (1 + + discount rate)^Project life = $9,800 / (1 + 0.17)^6 = $3,820.42

Net present value of Project A = PV of annual cash inflow + PV of salvage value - Cost of equipment required = $89,729.62 + $3,820.42 - $135,000 = -41,449.96

2. Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)

Working capital investment required = $135,000

Using the formula for calculating the present value of an ordinary annuity, the present value (PV) of the annual cash inflows can be calculated as follows:

PV of annual cash inflow = Annual cash inflow * (1 - (1 / (1 + discount rate))^Project life) / discount rate) = $63,000 * ((1 - (1 / (1 + 0.17))^6) / 0.17) = $226,118.64

The present value (PV) of the Working capital investment required can be calculated as follows:

PV of Working capital investment required = Working capital investment required / (1 + + discount rate)^Project life = $135,000 / (1 + 0.17)^6 = $52,628.21

Net present value of Project B = PV of annual cash inflow + PV of Working capital investment required - Working capital investment required = = $226,118.64 + $52,628.21 - $135,000 = $143,746.85

3. Which investment alternative (if either) would you recommend that the company accept?

From parts 1 and 2 above, we have:

Net present value of Project A = -41,449.96

Net present value of Project B = $143,746.85

Since the Net present value of Project A is negative, it should be rejected.

Since the Net present value of Project B is positive, it should be accepted.

Therefore, I would recommend that company accept Project B.

6 0
3 years ago
Derived demand is demand: Group of answer choices
Aleks [24]

Answer:

C) linked to the production and sale of some other item.

Explanation:

• Derived demand is an economic term describing the demand for a good/service resulting from the demand for an intermediate or related good/service.

• Derived demand is solely related to the demand placed on a good or service for its ability to acquire or produce another good or service.

• The principles behind derived demand work in both directions; if the demand for a good decrease, the demand for the goods required to produce the item will also decrease.

5 0
3 years ago
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