There are costs and benefits to either method of solving a Capitalizing Problem.<br> True or False?

On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had

harkovskaia [24]

The journal entry, to record the sale of the treasury shares on February 1, would include:

a) debit to a loss account for $112,500

b) credit to Treasury Stock for $90,000

c) credit to a gains account for $112,500

d) debit to Treasury Stock for $90,000

Answer:

Option D Debit to Treasury Stock for $90,000

Explanation:

The journal entry of repurchase of treasury stock is as under:

Dr Treasury Stock $90,000

Cr Cash $90,000

As the treasury stock has been purchased for cash, the cash has been decreased and the decrease in treasury stock is credit in nature. Hence the decrease in stock is shown as debit and decrease in cash is shown as credit.

The rate as which the stock is purchased is the price at which treasury stock will be debited = Treasury shares purchased × Fair Value per Share

= 3,750 shares × $24

= $90,000

5 0

3 years ago

If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that: a. it is

DIA [1.3K]

Answer:

d. more consumer goods can only be produced at the cost of fewer capital goods.

Explanation:

The production possibility curve is a curve that shows the two combinations of goods and services produced in an economy when its resocurces are fully employed.

To increase the production of one good, more quantity of the other good has to be given up.

The opportunity cost of production increases as more quantity of one good is produced.

In this question, to produce more consumer goods, fewer capital goods would be produced.

I hope my answer helps you

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4 years ago

Jan is considering starting a temporary help agency. Why might this be a good business to st art?

blondinia [14]

Answer: B: The trend toward hiring temporary workers is up

Explanation: A temporary help agency could be explained as an establishment which offers workers to its client's for temporary use or need. The client notifies the agency of its need for temporary workers and the agency does as required. The temporary help agency business could be seen as a good business to establish due to the rising demand for temporary workers by organization in other to reduce the number of permanent personnel their payroll. This logic ensures that these organizations reduce the cost of salaries and benefits of their employees.

5 0

3 years ago

The supported commander's ____________ gives the service components, supporting commands, and agencies a detailed oplan, and it

Vesnalui [34]

The correct answer is exord. An exord is being defined in military form by which this implies to having an order to be implemented or a specific order to be carried out in which is specified and detailed that are to be provided to the group.

6 0

3 years ago

Read 2 more answers

Lorraine has worked at GHI Inc. for 14 years. GHI has a large building where each divisional unit is located on a different floo

likoan [24]

Answer:

The correct answer is (E)

Explanation:

Lorraine, sally and Jonas all three work in a different department but they team up to provide recommendations to upper management that makes them a departmental team. The departmental team is a team which consists of employees working in different departments who have a similar set of skills, thoughts and reputation. In a departmental team, these people work together to achieve a common goal.

7 0

3 years ago

There are costs and benefits to either method of solving a Capitalizing Problem. True or False?