1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Wittaler [7]
3 years ago
14

On April 16, 2018, Rodriguez Corporation reacquired 12,000 shares of its own $10 par stock for $660,000 cash. On November 4, 201

9, 1,000 of the treasury shares were reissued at a price of $65 per share. The journal entry to record the reissuance of the 1,000 shares of stock on November 4 includes a:__________.
a) Credit to additional Paid In Capital: Treasury Stock Transactions of $10,000.
b) Credit to Treasury Stock reissued of $65,000
c) Credit to Gain on Treasury Stock transactions of $10,000.
d) Credit to Common Stock of $10,000
Business
1 answer:
never [62]3 years ago
6 0

Answer:

The answer is a) Credit to additional Paid In Capital: Treasury Stock Transactions of $10,000.

Explanation:

The repurchased price per share in April 16,2018 is equal to: 660,000/12,000 = $55 per share;

Thus, once the reissued of these 12,000 repurchased shared took place, common stock account will be credited at the amount equal to 55 x Number of share reissued. In case the reissued price is higher than $55, the surplus amount will be Credited into Paid-in Common share account to present the difference between cash receipt and common share recorded; in case reissued price is lower than $55, Retained earning account will be debited to present the difference between cash receipt and common share recorded

As a result, the reissued of share on November 4,2019 will include a $10,00 credited to additional Paid In Capital; calculated as (65-55) x 1,000 = $10,000.

You might be interested in
A recent candidate for mayor of a major city wanted to win the election by focusing the voters' anger-at bad economic conditions
Blababa [14]
<span>This despicable campaign strategy makes use of the concept of </span>scapegoating.  Scapegoating is putting the blame on another person or group for something they did not do. In this campaign strategy, the blame is being put on mexican-americans and the candidate is using that to try and sway votes. Scapegoating is frowned upon and is normally used as an ego defense mechanism. 
6 0
4 years ago
A check list should be based on past____?
Jet001 [13]
Is there any choices?
6 0
4 years ago
Read 2 more answers
Seller Dayne was made aware by the trustee that the lender was wanting to proceed with foreclosure on his property. What type of
elena55 [62]

Answer:

Promissory agreement and Deed of trust.

Explanation:

In this scenario, Seller Dayne was made aware by the trustee that the lender was wanting to proceed with foreclosure on his property. The type of financial agreement that Seller Dayne have with this lender is a Promissory agreement and Deed of trust.

A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.

On the other hand, a deed of trust can be defined as a legal document used by a party (borrower) to pledge his or her property to another party (lender) as guarantee or collateral for the repayment of a loan. The deed of trust is typically made up of three (3) parties; the lender, borrower and a trustee.

Additionally, a foreclosure on a property refers to a legal procedure whereby the property being pledged by a borrower for a debt is sold to pay off the debt as a result of defaulting in payments or terms with respect to a loan.

6 0
3 years ago
To automate one of its production​ processes, the Milwaukee Corporation bought three flexible manufacturing cells at a price of
liq [111]

Answer:

$1,521,800

Explanation:

The computation of cost basis is shown below:-

Three cells cost price = 3 × $470,000

= $1,410,000

Combination of rate charges = $30,000 + $16,000 + $39,000 + $3,600

= $88,600

Wages of one foreman = wage per hour × weeks worked × hours per week

= $29 × 5 × 40

= $5,800

Wages of 4 foremen = 4 × $5,800

= $23,200

Three cells cost basis = Three cells cost price + Combination of rate charges + Wages of one foreman

= $1,410,000 + $88,600 + $23,200

= $1,521,800

4 0
3 years ago
Last month, Laredo Company sold 650 units for $125 each. During the month, fixed costs were $8,850 and variable costs were $75 p
Y_Kistochka [10]

Answer:

1. $50 and 40%

2. 177 units and $22,125

3. 473 units and 72.77%

Explanation:

Price = $125

Variable cost = $75

Fixed cost =$8,850

Contribution margin is the net of sales price and variable cost of the product. It is the cost available to recover the fixed cost and make profit afterward.

1. Contribution margin = Sales price - Variable cost = $125 - $75 = $50

Contribution margin ratio = Contribution margin / Sale price = $50 / $125 = 40%

Break-even is the level of sales at which business has no profit no loss situation.

2. Break-even point = Fixed cost / Contribution margin per unit = $8,850 / $50 = 177 units

Break-even in $ = 177 units x $125 = $22,125

Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.

3. Margin of Safety = Total sales - Break-even point = 650 units - 177 units = 473 units

Margin of safety to sales = ( Margin of safety / Total sales ) = ( 473 units / 650 units ) x 100 = 72.77%

3 0
3 years ago
Other questions:
  • HRM Practices Human resources management is critical to the success of organizations as human capital becomes an important sourc
    14·1 answer
  • An in-depth understanding of ethics is important to the long-term viability of a business because unethical decisions will negat
    7·1 answer
  • Pharoah Company began the year by issuing $77500 of common stock for cash. The company recorded revenues of $783000, expenses of
    10·1 answer
  • On June 30, year 8, Adonis Co. had outstanding 4%, $4,000,000 face value bonds, originally issued at 98, maturing on June 30, ye
    5·1 answer
  • On the first day of class at a new university you made judgments about the quality of the class before the professor had entered
    6·1 answer
  • Linger Products uses a two-stage allocation method to assign costs to its products. The following information has been provided
    8·1 answer
  • Select the term in the blank space beside the definition that it most closely matches.
    9·1 answer
  • Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $83,000 from his employer and won $
    9·1 answer
  • If you are willing to accept some risk in your long-term savings strategy, you might want to invest in
    9·1 answer
  • on april 1, 2021, a company loans one of its suppliers $58,000 and accepts a 29-month, 14% note receivable. calculate the amount
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!