QUESTION 4

Prepare the issuer's journal entry for each of the following separate transactions. On March 1, Atlantic Co. issues 44,500 share

steposvetlana [31]

Answer and Explanation:

The journal entries are shown below;

On March 1

Cash A/c $303,500

To Common Stock $3 Par value (44,500 × $3) $133,500

To Paid in capital in excess of par value $170,000

(Being the common stock issued is recorded)

On April 1

Cash $74,000

To Common Stock, no par value $74,000

(Being the common stock issued is recorded)

On April 6

Inventory $43,000

Machinery $155,000

To Common Stock (2,400 ×$20) $48,000

To Notes payable $93,000

To Paid in capital in excess of par value $57,000

(Being the shares are issued)

3 0

3 years ago

Emma, Inc. reacquired 166,326 of its shares at $22 per share as treasury stock. Last year, for the first time, Emma sold 37,992

Lesechka [4]

Answer:

The correct answer is $152,949.

Explanation:

According to the scenario, the given data are as follows:

Reacquired shares = 166,326

Per share price = $22

So, we can calculate the retained earning decline by using following formula:

Retained earning decline = Cost of Treasury shares - Sales price - Paid in Capital from stock

Where, Cost of treasury shares = 48,987 × $22 = $1,077,714

Now Sales Price = 48,987 × $15 = $734,805

and Paid in Capital from stock = 37,992 × ( $27 - $22) = $189,960

By putting the value in the formula, we get:

Retained earning decline = $1,077,714 - $734,805 - $189,960

= $152,949

6 0

3 years ago

After a large hotel chain discovered that their computer systems had been hacked and customer credit card information had been a

Gnesinka [82]

The hotel's quick action in response to a serious situation was likely due to CYBER SECURITY BREACH. It is a threat not only to the customers but to the hotel business as well because with this breach, customers will find it hard to trust said hotel again.

Because confidential data like credit card information were stolen, they need to immediately inform their customers to ensure that the customers will take the necessary steps in protecting themselves from having their identity stolen and from having their credit cards used in purchasing items they are not aware off.

4 0

4 years ago

Suppose the cost of flying a 100-seat plane for an airline is $50,000 and there are 10 empty seats on a flight. The average cost

Svetlanka [38]

Answer:

$500

Explanation:

The average cost per seat will be the total cost per plane divided by the seating capacity.

Therefore, the average cost of $50,000 divide by 100 seats

=$50,000/50 seats

=$500

3 0

3 years ago

Shontelle owns an apartment house that has an adjusted basis of $760,000 but is subject to a mortgage of $192,000. She transfers

emmainna [20.7K]

Answer:

Realized gain of Shontelle = $332000

Explanation:

given data

adjusted basis = $760,000

mortgage = $192,000

receives cash = $120,000

fair market value = $780,000

to find out

What is Shontelle realized gain or loss

solution

we find here first Realized gain that is express as

Realized gain = Amount realized - Adjusted basis ..................1

so here Amount realized = (receives cash + fair market value + mortgage)

Amount realized = (120000 + 780000 + 192000)

Amount realized = 1092000

so from equation 1

Realized gain = Amount realized - Adjusted basis

Realized gain = 1092000 - 760000

Realized gain = $332000

so we can say that

Realized gain of Shontelle = $332000

3 0

3 years ago