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Gwar [14]
3 years ago
11

On December 2, Coley Corp. acquired 1,400 shares of its $3 par value common stock for $24 each. On December 20, Coley Corp. reso

ld 1,000 shares for $10 each. Which of the following is correct regarding the journal entry for the resold shares?A. Credit Treasury Stock $5,000B. Credit Treasury Stock $12,000C. Credit Additional Paid in Capital $3,000D. Debit Cash $9,000
Business
1 answer:
Andrei [34K]3 years ago
8 0

Answer:

Explanation:

The journal entry to record the resold share is shown below:

Cash A/c Dr $10,000       (1,000 shares × $10)

    To Common Stock $3,000          (1,000 shares × $3)

    To  Additional Paid-in Capital in excess of par - Common Stock $7,000

     (1,000 shares × $7)

(Being the resold shares is recorded and the remaining balance is credited to the additional paid-in capital account)

While reselling the stock, we debited the cash account and credited the common stock and additional paid-in capital account

All other information which is given is not relevant. Hence, ignored it

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Sub Sandwiches of America made the following expenditures related to its restaurant.
galina1969 [7]

Answer:

1. Heating Equipment

2. Premises

3. Maintenance Expense

4. Prepaid Insurance

5. Intangible Asset ; Logo

6. Premises

Explanation:

1. Replacement of heating equipment is substantial hence it is capitalized to the Heating Equipment Account.

2. The project is capitalized to the Premises Account as it form part of premises.

3. Annual Building maintenance is a revenue expenditure not capitalized.

4. An Asset Insurance Prepaid for future economic benefits to be realized is recognized.

5. The new sign would result in inflow of economic benefit and is non-tangible hence Intangible Asset is recognized.

6. Work done is capitalized in the Premises Account

3 0
3 years ago
Nero and Omar agree to buy natural gas to sell to Power Fuel Company and to share storage costs until Power Fuel can take delive
ryzh [129]

Answer:

The correct answer to the following question is option D) Confusion .

Explanation:

In this question Both Nero and Omar are trying to create confusion for the Power fuel company . They're trying to create the confusion for the power fuel because they're trying to take advantage of reducing their cost ,as Nero and Omar have made agreement between them to buy natural gas together and then sell it to power fuel.

6 0
3 years ago
Which of the following explains why the aggregate demand curve slopes downward? a) The interest-rate effect, the real-balances e
klio [65]

Answer:

Option (a) is correct.

Explanation:

Real balance effect: This effect states the relationship between the price level and the purchasing power of the consumer. If there is a higher price level in an economy then this will reduce the purchasing power of the consumers and results in a fall in investment expenditure, net exports and consumption expenditure. That's why aggregate demand curve is slopes downward.

Interest-rate effect: This effect states the cost of borrowing funds with the price inflation in an economy. If there is a higher interest rate then most of the consumers cut down there borrowings activities which is one of the reason of downward sloping demand curve.

Foreign purchases effect: When there is a fall in the price level then as a result the price in the United states falls relative to the foreign prices. Hence, there is an increase in the U.S exports and decrease in the U.S imports.

6 0
3 years ago
Frolic Corporation has budgeted sales and production over the next quarter as follows: August September Sales in units Productio
Black_prince [1.1K]
Bro its c im sure just put c
5 0
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models of competitive markets are helpful in understanding real-world markets. to help you to better understand competitive mark
Taya2010 [7]

Productive efficiency focuses on the cost of production while allocative efficiency focuses on the distribution of the products.

In economics, the efficiency or productivity of a business is classified into two types:

  • Productive efficiency.
  • Allocative efficiency.

These two types of efficiency focus on different aspects of production and selling goods and services.

Productive efficiency: This type implies producing goods at the lowest cost possible. This means:

  • Avoiding unnecessary costs.
  • Controlling costs when the number of units increases.

Allocative efficiency: This type implies selling or allocating the products in society. This means:

  • Considering the maximum amount the customer can pay for a product (marginal benefit).
  • Making the cost of production equal to the marginal benefit.

Note: This question is incomplete because the statements that need to be classified are not provided; due to this, I answered the question based on general knowledge.

Learn more in: brainly.com/question/3886960

8 0
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