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
devlian [24]
2 years ago
14

Oregon Outfitters issues 1,700 shares of $1 par value common stock at $20 per share. Later in the year, the company decides to p

urchase 240 shares at a cost of $19 per share.
Required:
a. Record the original issue of the 1,700 shares.
b. Record the purchase of 240 shares
c. Record the entry if Oregon Outfitters resells the 240 shares of treasury stock at $27 per share.
Business
1 answer:
k0ka [10]2 years ago
3 0

Answer:

A. Dr Cash $34,000

Cr Common Stock $1,700

Cr Paid in capital in excess of par-Common Stock $32,300

B. Dr Treasury stock $4,560

Cr Cash $4,560

C. Dr Cash $6,480

Cr Treasury stock $4,560

Cr To Paid in capital-Treasury stock $1,920

Explanation:

a. Preparation of the journal entry to Record the original issue of the 1,700 shares

Dr Cash $34,000

(1,700 shares × $20)

Cr Common Stock $1,700

(1,700 shares × $1)

Cr Paid in capital in excess of par-Common Stock $32,300

($34,000-$1,700)

(Being issue of common stock is recorded)

b. Preparation of the journal entry to Record the purchase of 240 shares

Dr Treasury stock $4,560

(240 shares × $19 per share)

Cr Cash $4,560

(Being repurchase of treasury stock is recorded)

C. Preparation to record the Journal entry if Oregon Outfitters resells the 240 shares of treasury stock at $27 per share.

Dr Cash $6,480

(240 shares × $27 per share.)

Cr Treasury stock $4,560

(240 shares × $19 per share)

Cr To Paid in capital-Treasury stock $1,920

($6,480-$4,560)

(Being reissue of treasury stock is recorded)

You might be interested in
What does the Lorenz Curve illustrate about the economy?
Alex_Xolod [135]

Answer:

Lorenz curve can be understood as a graphical representation of distribution of wealth or income among the population in a given economy.

Explanation:

Lorenz Curve was proposed by Max O. Lorenz in the year 1905 to represent inequality in the distribution of income among the given population. This curve illustrates that the distribution of wealth is not equal, where one section of the population has all the wealth or income of the economy and the other section of the population is left with none. Whereas in the case of perfect equality, each section of the population should receive an equal amount of wealth of the economy. This means that N% of the society should always have N% of income and not more and not less than that. Thus, this situation is hypothetical and thus, the idea of the Lorenz Curve comes into consideration.

6 0
3 years ago
Sheffield Corp. is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the
son4ous [18]

Answer:

The correct decision would be to process further before product is sold

Explanation:

Profit if the product is sold un-assembled

Selling price                                          $135

cost of un-assembled product            ($60)

Profit on un-assembled  product         $75

Profit if the product is further assembled before sale

Selling price                                         $170

Cost of un-assembled product           ($60)

Cost of assembling product                ($25)

Profit if the product is assembled       $85

The profit increased by $10 if the product is further assembled before it is sold.

Hence the best course of action would be to further assemble the product before it is sold

7 0
3 years ago
Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A
notsponge [240]

Answer:

$100 in bank A

$900 in bank B

Explanation:

Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.

  • bank A = $1,000 x 10% = $100
  • bank B = $1,000 x 90% = $900

If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.

5 0
3 years ago
For most businesses, annual straight line depreciation expense on the company's building is what type of cost?
Rom4ik [11]

For most businesses, annual straight line depreciation expense on the company's building is fixed cost.

A fixed cost is one that does not change no matter how many units of a good or service are produced or sold. Fixed costs are expenses a company must pay regardless of the specific economic operations it does. As a result, fixed expenses are often indirect because they have nothing to do with how a firm produces any goods or services. Both fixed expenses and variable costs, which together make up a company's total costs, are common. It's common practice to reduce fixed expenses by using shutdown points.

Learn more about fixed costs here:

brainly.com/question/17100497

#SPJ4

6 0
1 year ago
1.You should document your sources in all of the following situations except A. when using someone else's unique idea. B. when u
jeka94

2. A. Feasibility report

7 0
3 years ago
Other questions:
  • 3. What is meant by economy of scale? Why would costs be im pacted by the quantity of garment that is produced?
    11·1 answer
  • The managerial function of leading: is a part of the planning process. involves monitoring the organization s progress toward it
    15·1 answer
  • On february 28th of 1986, _____________ starts her first solo world tour, starpeace, planning both u.s. and european dates. due
    7·1 answer
  • Morris owns a bicycle store. he often leaves daniel in charge of the store. one saturday evening, after daniel leaves the store,
    14·2 answers
  • Rent controls are a typical example of a price ceiling.
    12·1 answer
  • A project requires an initial investment of $10 million today. If the cost of capital exceeds the project IRR, then the project
    11·1 answer
  • ADDDDDDDDDDDDDDDDDDDDDDDDDDDDD MEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
    13·1 answer
  • Barbara buys 100 shares of DEM at $35 a share and 200 shares of GOP at $40 a share. She buys on margin and the broker charges in
    15·1 answer
  • 4. Tim moves to a different state and buys a house in his new city. His new house is bigger than the apartment he lived in befor
    8·1 answer
  • Describe 'the market place' ​
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!