In 2018, borland semiconductors entered into the transactions described below. In 2015, borland had issued 215 million shares of
its $1 par common stock at $47 per share.
Required: Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:
a. On january 2, 2018, borland reacquired 11 million shares at $45.00 per share.
b. On march 3, 2018, borland reacquired 11 million shares at $50 per share.
c. On august 13, 2018, borland sold 1 million shares at $55 per share.
d. On december 15, 2018, borland sold 2 million shares at $50 per share.
Required: Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:
a. On january 2, 2018, borland reacquired 11 million shares at $45.00 per share.
b. On march 3, 2018, borland reacquired 11 million shares at $50 per share.
c. On august 13, 2018, borland sold 1 million shares at $55 per share.
d. On december 15, 2018, borland sold 2 million shares at $50 per share.
1 answer:
Answer:
Kindly check attached picture
Explanation:
In 2018, borland semiconductors entered into the transactions described below. In 2015, borland had issued 215 million shares of its $1 par common stock at $47 per share.
Required: Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:
a. On january 2, 2018, borland reacquired 11 million shares at $45.00 per share.
b. On march 3, 2018, borland reacquired 11 million shares at $50 per share.
c. On august 13, 2018, borland sold 1 million shares at $55 per share.
d. On december 15, 2018, borland sold 2 million shares at $50 per share.
Kindly check attached picture for detailed explanation
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Answer:
a). Per unit cost = $ 159.31
b). Yes, Finch Modems should make the pagers.
Explanation:
a). Facility level cost proposed to be allocated to the pager line
= 0.22 + 210750
= $ 210750.22
Facility cost per unit of pager = = $ 131.71
Cost per unit of pager = $ 26 + $ 1.60 + $ 131.71
= $ 159.31
b). At the selling price of $ 40 per unit, the pager line will result in an operational loss, the profit for the company as a whole will increase if it decides to manufacture the pagers.
Contribution margin per unit of pager = $ 40 - ( $ 26 + $ 1.60)
= $ 15.6
Total contribution margin per unit of pager = 1600 x $ 15.6
= $ 24,960
The net operating income for the company would increase by $ 24.960 if the pagers are added to its product portfolio.
Hence Finch Modems should make the pagers.
Answer:
Their order quantity will rise but the time between orders will fall.
Explanation:
Let's analyse the EOQ formula:
If Demand increases
The dividend increase, so the quotient increase.
EOQ will rise.
<u>Only options b and c are correct on that statment.</u>
Now let's check the time between order:
If we analyze the increase in demand:
√(2xΔDxS/H)/ ΔD
everything else is keep constant so we have:
√(CxΔD)/ ΔDx
If we use L'Hopital we can conclude this function limit is zero.
Anyway a more easy way to do it will be calculate with a demand of 1000
and then with a demand of 50,000 to notice how much the time between order decrease.
√(1000) / 1000 = 0.031622776
√(51000)/ 51000 = 0.004428074
<u>so we have EOQ increase and days between order decrease.</u>
Now only option B is correct !