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2 years ago

The balance sheet of Messi Services included the following shareholders' equity section at December 31, 2021:

Business

1 answer:

Westkost [7]2 years ago

6 0

Answer:

a. $ 1,068 $ 556

Explanation:

Calculation for what the balances in the paid-in capital—excess of par and retained earnings accounts are:

Calculation for Paid up capital in excess of par

Paid up capital in excess of par=$1,080-[($1,080/180)*2million shares]

Paid up capital in excess of par=$1,080-($6 per share*2million shares)

Paid up capital in excess of par =$1,080-$12

Paid up capital in excess of par=$1,068

Calculation for the Retained Earnings

Retained Earnings=$560-$4

Retained Earnings=$556

Therefore the balances in the paid-in capital—excess of par and retained earnings accounts are:$ 1,068 and $ 556

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What is the percentage return on a stock that was purchased for $48.40, paid a $1.67 dividend, and was then sold after one year

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Answer:

-1.10%

Explanation:

Calculation for percentage return on a stock

Stock percentage return=$46.20 + 1.67 - 48.40)/$48.40

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2 years ago

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2 years ago

Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of

Elena-2011 [213]

Answer:

20%

Explanation:

Gross profit is the net of sales and cost of sales. Gross Profit percentage is the ratio of gross profit to sales expressed as percentage.

Product Units Produced Final Sales Value per Unit Separate Costs

A 10,000 $25 $125,000

B 15,000 $30 $250,000

C 12,500 $24 $125,000

Total 37,500 $500,000

Sales Value

A (10,000 x $25) $250,000

B (15,000 x $30) $450,000

C (12,500 x $24) $300,000

Total Sales Value $1,000,000

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Separable cost ($500,000)

Gross Profit $200,000

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3 years ago

Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then

satela [25.4K]

Answer:

Transaction 1

Assets - Decrease by $225,000

Cash expended to acquire shares = 5,000 * 45 = $225,000

Liabilities - No effect

Stockholders' equity - Decrease by $225,000

Increase in Treasury shares leads to decrease in the amount stockholders hold.

Paid In Capital - No effect

Retained Earnings - No Effect

Net Income - No Effect

Transaction 2

Assets - Increase by $98,000

Cash increased because of sale of stock = 2,000 * 49 = $98,000

Liabilities - No effect

Stockholders' equity - Increase by $90,000

= 2,000 * 45 = $90,000

Cost method means that when debiting from Treasury account, use original cost.

Paid In Capital - Increase by $8,000

If stock is sold for amount different from what it was bought, it goes into this account. If it is larger than it was bought for then this account increases and vice versa.

Retained Earnings - No Effect

Net Income - No Effect

Transaction 3

Assets - Increase by $20,000

Cash from sale of stock = 500 * 40 = $20,000

Liabilities - No effect

Stockholders' equity - Increase by $22,500

= 500 * 45 = $22,500

Paid In Capital - Decrease by $2,500

If stock is sold for amount different from what it was bought, it goes into this account. If it is smaller than it was bought for then this account decreases and vice versa.

Retained Earnings - No Effect

Net Income - No Effect

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3 years ago