506 dollars or if you need a decimal it would be 506.12
Answer: $10,000 increase in Treasury Stock
Explanation:
Treasury stock, is also known refered to as the treasury shares and it occurs when stock is bought buy the issuing company back from the stockholders.
This results in the reduction in the total number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will bring about a $10,000 increase in the treasury stock.
Answer:
Accrued Interest - $5,333.33
Explanation:
At the end of the year, due to the matching principle, expenses of the same period need to be matched with that period and 'expensed' in the same year.
In the scenario above there has been 4 months out of 9 used in the current year, hence as at December 31st. 4 months interest will be included in the current year and 5 months interest will be attributable to the following future.
4 months / 9 months * 6% * 200,000 = $5333.33
In consonance with the <em>accrual basis of accounting</em>, the amount of accrued interest that will be recorded with adjusting entries will be:
Dr Interest expense - 5,333.33
Cr Accrued Interest - 5,333.33
