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
AleksandrR [38]
3 years ago
7

Crossroads Mall had 100,000 outstanding shares of common stock. On June 16, 2018, Crossroads repurchased 20,000 shares of its ow

n stock at $30 per share On July 23, 2018, Crossroads resold 10,000 shares at $28 per share. What net effect did the repurchase and the resell of common stock have on the accounting equation?
a. Increase in assets and decrease in stockholders' equity.
b. Decrease in assets and increase in stockholders' equity.
c. Increase in assets and increase in stockholders' equity.
d. Decrease in assets and decrease in stockholders' equity
Business
1 answer:
timofeeve [1]3 years ago
7 0

Answer:

The answer is c. Increase in assests and increase in stockholder's equity.

Explanation:

The accounting entries Crossroads Mall will have for the sell of repurchased shares as followed:

Dr Cash                                                                           280,000

Dr Paid-up capital and/or Retained Earning                 20,000

Cr Common share                                                          300,000

( further calculation notes: sold of 10,000 repurchased shares at $28 brings about 280,000 in cash; while common shares will be recorded at the repurchased price, that is : 30 x 10,000)

Thus, the net effect of the sale of repurchased shares will be the Increase in Cash ( assets) of $280,000 and the Increase in Stock Equity of the same amount, that is, $280,000.

You might be interested in
ExxonMobil uses a(n) _____ appeal when it explains technical aspects of its products, such as lithium ion batteries, hydrogen te
solniwko [45]

Answer:

D. Informational

Explanation:

Informational appeal is a form of advertisement in which a producer or marketer explain his/her products to viewers and target customers. It gives a brief highlight to the benefit a consumer will get from using the specifit product. It elucidates and shines more lights on a products attributes, benefits and characteristics. When ExxonMobil explains areas on lithium ion batteries, hydrogen technology, biofuels, and CO2 capture technologies, they are using information appeal.

7 0
3 years ago
When is implementation of a product backlog item considered complete?
fiasKO [112]
<span>When the desired job has all being done and there is no assigned further task for the process to complete anymore which literally means that the process has fully completed or implemented all the procedures that it was initially set out to do.</span>
6 0
3 years ago
Read 2 more answers
1. The market-pull view of new product innovation is to A. "pull" the products into the market as fast as possible. B. develop p
pashok25 [27]

Answer:

(B). Develop products that the company can sell, based on customer needs.

Explanation:

When <u>customer needs arise in the market</u>, organizations become aware of these needs through market research and customer feedback, and then try to <u>meet these needs by developing new products.</u>

The need for new products is what is known as Market-pull.

5 0
3 years ago
XYZ Corp. owns 18% of the voting common stock of ABCD Enterprises. In the current tax year, XYZ receives $250,000 in dividend in
anzhelika [568]

Answer:

$25,500

Explanation:

Given:

Stocks owned by the XYZ corp = 18%

Dividends received = $250,000

Marginal tax rate = 34%

Now,

According to the rule of inter corporate dividend exclusion :

A corporation owning stock in another corporation, the 70% of their dividends received are not included in the taxation

thus,

Only 30% of the dividend income is subjected to tax

therefore,

30% of $250,000

or

Dividends subjected to tax = $75,000

hence,

tax liability on dividend income = 0.34 × $75,000

or

tax liability on dividend income = $25,500

7 0
3 years ago
During its first year of operations, Silverman Company paid $7,000 for direct materials and $9,500 for production workers' wages
r-ruslan [8.4K]

Answer:

Closing Inventory would be standing at $10000

Explanation:

The cost that forms part of the cost of inventory are all those production costs that are necessary to convert it into finished goods which in this case is:

Production cost = All direct costs are production costs

And

All Direct Cost = $7000 Direct Mat + $9500 Production Workers Wages + $8500 Direct Utilities bills = $25000

And the production cost incurred was for 5000 units which means the unit production cost was $5 ($25000 / 5000 units).

So closing inventory value would be = 2000 closing inventory units * $5

= $10000

5 0
3 years ago
Read 2 more answers
Other questions:
  • Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average
    14·1 answer
  • The UCR Corp expects an earnings of $100,000 every year forever. The company currently has no debt, and its cost of equity is 15
    9·1 answer
  • Suppose that a monopolist can segregate his buyers into two different groups to which he can charge two different prices. In ord
    7·1 answer
  • Recently, stores have been reporting increased sales of DVD players and a reduction in their prices. In accordance with this tre
    9·1 answer
  • Dunlap contracted to work exclusively for Foster during June for $5,000. On May 31, Foster canceled the contract. Dunlap found a
    6·2 answers
  • An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious i
    8·1 answer
  • Interactive Data Corp. hired Foley as an assistant product manager, and over the next six years, Interactive steadily promoted h
    5·1 answer
  • Babak owns a sports practice facility called Boston Batting Cages in Boston, Massachusetts. During the first year of operation,
    12·1 answer
  • Maricela writes slowly. When preparing a first draft, she spends a good deal of time formatting and choosing the correct font. M
    10·1 answer
  • Mystery, Inc. is contemplating selling bonds. The issue is to be composed of 800 bonds, each with a face amount of $750. How muc
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!