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USPshnik [31]
4 years ago
15

When a corporation purchases its own stock using the cost method and resells it later at a higher price, a credit entry is made

to which account(s) in the later sale? "CHEGG"
Business
1 answer:
Amiraneli [1.4K]4 years ago
7 0

Answer: A. Both treasury stock and paid in capital from treasury stock

Explanation:

When using the cost method, the stock is recorded at cost which means that the stock repurchased (Treasury Stock) is recorded at cost of buying it. If it is sold for a higher amount than it was bought for, the amount it was bought for will be credited from the Treasury account.

The remaining amount will be credited to the Additional Paid-In Capital account which is used to record variations between the amount equity was bought for versus the amount it was sold for.

Had the repurchased stock been sold for less, the Additional Paid In Capital Account would have been debited.

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Whole Grain Bakery purchases an industrial bread machine for $20,000. In addition to the purchase price, the company makes the f
Reptile [31]

Answer:

Total cost of the machine = $23500

Explanation:

given data

Purchase price = $20,000

Freight expenses = $1,000

Installation = $2,000

Testing = $500

property tax = $400

solution

we get here Total cost of the machine that is express as

Total cost of the machine = purchase price + fright expenses + installation + testing   .....................1

put here value and we get

Total cost of the machine = $20,000 + $1,000 + $2,000 + $500

solve it we get

Total cost of the machine = $23500

5 0
4 years ago
In the United States, a large fraction of transaction among banks takes place over Fedwire, which is an electronic payments syst
Butoxors [25]

Answer:

Do these statistics indicate that there might be some large measurement error in the official U.S. national income accounts, or is this entirely consistent with official GDP numbers being accurate measures of aggregate economic activity?

The statistics about transactions among bank has nothing to do with a country's GDP. The GDP measures the market value of all the final and legal goods and services produced within a country during a given period. Money being transferred form one bank to another has nothing to do with the production of goods and services.

E.g. I have money on banks A, B and C. Today I decided that I would transfer $10,000 from my account on bank A to my account on bank B because I am interested in cash deposit. After looking at the interest rates paid by a CD, i decided it is not worth it. So I transfer my $10,000 out of bank B, but this time I'm sending it to my account on bank C. During the past 2 days I transferred $20,000 between banks but actually didn't add 1¢ to the country's GDP.

5 0
3 years ago
What is principle of management?
Leona [35]

Answer:

principal of management is Techniques are procedures or methods, which involve a series of steps to be taken to accomplish the desired goals. Principles of management are broad and general guidelines for decision-making behaviour.

3 0
2 years ago
Which of these will cause aggregate demand to shift to the right?
evablogger [386]

Answer:

B

Consumers will be more likely to boost spending if the change in tax ... For instance, a reduction in income tax rates or increase ... One possibility is that households may not pay full.

Explanation:

Can i have brainliest

4 0
3 years ago
What is the effect on market when suppliers under invest in their businesses​
yanalaym [24]

Answer:

  • Low supply
  • Scarcity
  • Low economic growth

Explanation:

When suppliers under invest in their business, they will end up having the capacity to only produce less than the market requires. Should this happen, supply will be reduced in the market which would lead to relative scarcity all else being equal.

For economic growth to happen, there must be increasing production in an economy so if suppliers are under investing and production is low, there might be low or no economic growth.

8 0
3 years ago
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