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Ymorist [56]
2 years ago
6

At the end of the prior year, Atoka Industries reported the following account balances: Common Stock ($0.01 par value) $ 2,000 A

dditional Paid-in Capital 1,000,000 Retained Earnings 1,400,000 Treasury Stock 780,000 The treasury stock arose from a purchase of 10,000 shares of common stock for $78 per share. If the 10,000 treasury shares are issued for $50 per share in the current year, what journal entry must be prepared to record the transaction
Business
2 answers:
Yuliya22 [10]2 years ago
5 0

Answer and Explanation:

The Journal entry is shown below:-

Cash Dr, $500,000

(10,000 × $50)

Additional Paid in Capital Dr, $280,000    

        To Treasury Stock $780,000

($10,000 × $78)

(Being treasury stock is recorded)

Therefore If the shares from treasury stock are reissued at a cost that is lower than its cost, so the balance is debited to the additional paid-in capital.

Veronika [31]2 years ago
4 0

Answer and Explanation:

According to the scenario,  journal entry of the given data are as follow:-

Journal Entry  

Cash A/c (10,000 ×$50)    Dr.   $500,000

Additional paid in capital A/c    $280,000

     To Treasury stock A/c(10,000  × $78)     $780,000

(Being the reissue of treasury shares is recorded)

For recording this we debited the cash as it increased the cash and debited the additional paid in capital as it reduced the stockholder equity and credited the treasury stock

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Lostsunrise [7]

Answer:

Inventory turnover= 3.25

Explanation:

Giving the following information:

Cost of merchandise sold $552,500

Inventories:

Beginning of year 200,000

End of year 140,000

<u>To calculate the inventory turnover, we need to use the following formula:</u>

Inventory turnover= Cost of goods sold/ average inventory

Average inventory= (beginning inventory + ending inventory) / 2

Average inventory= (200,000 + 140,000)/2= 170,000

Inventory turnover= 552,500/170,000

Inventory turnover= 3.25

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3 years ago
Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonu
marishachu [46]

Answer:

$42,853

Explanation:

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Machinery

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Refer to the MACRS depreciation table

and we used the half year convention

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2 years ago
Steve is preparing a market analysis for the joneses and has selected three comparable properties. how many adjustments should s
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7 0
10 months ago
5 elements of Design for Delight?​
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2 years ago
. Shellbridge Corporation common stock has a par value of $25 and recently paid a dividend of $3.16 per share. The firm's divide
Fiesta28 [93]

Answer:

Intrinsic value: $ 45.19290274

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Explanation:

We use the gordon model to solve for the intrinsic value of the share.

\frac{divends_1}{return-growth} = Intrinsic \: Value

we must solve for the grow rate like  it was an interest rate:

<u>grow rate: </u>

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<u>dividends one year from now:</u>

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4 0
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