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Kamila [148]
3 years ago
12

Prepare journal entries to record the following transactions for Sherman Systems.

Business
1 answer:
tino4ka555 [31]3 years ago
3 0

Answer:

The journal entries required for the redemption as well as the two instances of stock sale is given in details below:

Explanation:

 DR CR

11-Oct Treasury stock 5000shares @$5 each 25000  

          Cash                                                                      25000

Being own shares repurchased  

1-Nov    Cash                                                    31000  

Treasury stock 1000 shares issued @$31 each         25000

Paid-in-capital treasury stock                                   6000

Reissuing treasury stock a higher price  

25-Nov Cash                                                     80000  

Paid-in-capital treasury stock                     6000  

Retained earnings                                             14000  

Treasury stock                                                      100000

Reissuing treasury stock at a  lower price  

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Ymorist [56]

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7 0
1 year ago
Bonds with a face amount of $1,000,000 are sold at 106. The journal entry to record the issuance is:
Blababa [14]

Answer:

b) Cash 1,060,000; Premium on Bonds Payable 60,000; Bonds Payable 1,000,000

4 0
3 years ago
Which of the follow are characteristics of the Democratic Party? Select 3.
AVprozaik [17]
Donkey is the symbol
Supports government interventions
Big in Northeast, West Coast, and large cities
6 0
3 years ago
Jamie is a manager in an industry that has a few large players and that has remained relativelystable over the past few years. H
QveST [7]

Answer: (A) Many new competitors

Explanation:

The many new competitors is the basically refers to the rival in the business or the same type of industry that selling the similar types of products and the services in the market.

Due to the new competitors in the market the level of the competition become increase as they sell the similar goods and the services at low price.

According to the given question, Jamie is the company manager and he investigate that the legislator propose the various types of new laws for deregulate the marketing industry.

Therefore, based on the given scenario, Jamie is facing the many new competitors in the market.    

6 0
4 years ago
Workman Software has 8.8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and cu
OverLord2011 [107]

Answer:

current yield 8.2089552%

YTM = 8.05%

effective annual yield = 4.92%

Explanation:

(A)

current yield = C/P

coupon payment / market price

8.8/107.2 = 0.082089552 = 8.2089552%

(B)

P = \frac{C}{2} \times\frac{1-(1+YTM/2)^{-2t} }{YTM/2} + \frac{CP}{(1+YTM/2)^{2t}}

First par being the present value of the coupon payment and second the redeem of the face value at the end of the bond.

market price 107.2

face value 100

time = 19

rate 8.8%

C = annual coupon payment 100 x 8.8% = 8.8

You solve this using a financial calculation and get the semiannual rate

YTM/2 = 0.040268160

then multiply by 2 to get the annual YTM

0.040268160  x 2 =

YTM = 0.08053632 = 8.05%

(C)

Effective Annual Yield

(1+HPR)^{365/time} -1 = EAY

where:

Holding period return:

\frac{Net \: Return}{Investment} = HPR

In this case:

coupon payment + redem - investment = net return

8.8 * 19 + 100 - 107.2 = 160

160/107.2 = 1.492537313

Then

(1+HPR)^{365/time} -1 = EAY

(1+1.142537313)^{\frac{365}{19\times365}} -1 = EAY

EAY = 0.049242509 = 4.9242509%

8 0
4 years ago
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