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
svetoff [14.1K]
3 years ago
13

Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common

stock outstanding as of the beginning of 2021. Power Drive has the following transactions affecting stockholders' equity in 2021.
March 1 Issues 52,000 additional shares of $1 par value common stock for $49 per share.
May 10 Purchases 4,700 shares of treasury stock for $52 per share.
June 1 Declares a cash dividend of $1.35 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)
July 1 Pays the cash dividend declared on June 1.
October 21 Resells 2,350 shares of treasury stock purchased on May 10 for $57 per share.

Required:
Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
notka56 [123]3 years ago
3 0

Answer:

Power Drive Corporation

Journal Entries:

March 1:

Debit Cash Account with $2,548,000

Credit Common Stock with $52,000

Credit APIC - Common Stock with $2,496,000

To record issue of 52,000 additional shares of $1 par value common stock for $49 per share.

May 10:

Debit Treasury Stock with $4,700

Debit APIC - Common Stock with $239,700

Credit Cash Account with 244,400

To record repurchase of 4,700 shares of treasury stock for $52 per share.

June 1:

Debit Dividends- Common Stock with $198,855

Credit Dividends Payable with $198,855

To record cash dividend of $1.35 per share declared (147,300 shares).

June 15:

No records required

July 1:

Debit Dividends Payable with $198,855

Credit Cash Account with $198,855

To record payment of cash dividend.

October 21:

Debit Cash Account with $133,950

Credit Treasury Stock with $2,350

Credit APIC - Common Stock with $131,600

To record reissue of treasury stock for $57 per share.

Explanation:

1. Issue of 52,000 additional shares results to a credit to the Common Stock account with 52,000 x $1 par value.  This is equal to $52,000.  The additional $48 x 52,000 goes to the Additional Paid-in Capital.

2. Treasury stock is the repurchase of outstanding stock by the company.  When repurchase at more than the par value, the difference is a debit to the Additional Paid-in Capital account, when the par value method is adopted.  The other method, which records the whole costs in the Treasury Stock account is the cost method.  Remember that the Treasury Stock account is a contra account to the Common Stock account.

3. Dividends are payable on outstanding stock.  The outstanding stock on June 1 to June 15 is calculated as follows:

Opening balance = 100,000 shares

New issue = 52,000 shares

less Treasury = (4,700)

Total = 147,300 shares

Dividends are then payable on 147,300 shares at $1.35 per share.  This gives a total of $198,855.

4. The resale of Treasury stock reduces the balance of the treasury stock account at par value and increases the Additional Paid-in Capital account with the premium.

You might be interested in
Samson and Sons purchased a 6-month insurance policy for $1,200 which covers the months July through December. Initially the ent
Vika [28.1K]

Answer:

The answer is D.

Explanation:

To increase asset and expense, you debit while credit decreases it.

To increase, liabity, revenue(income), equity, you credit while debit decreases it.

An insurance that has been prepaid is an asset because the benefit has not been fully utilised.

Samson and Sons has paid for an insurance that will expire December at the beginning of July.

$1,200 for 6 months.

Samson and Sons needs to recognize this as the service is being enjoyed monthly.

Therefore, insurance expense every month will increase by $1,200/6

$200

Remember that expense increase by debit and asset(Prepaid Insurance) decrease by credit.

So we have:

Debit insurance expense $200; Credit prepaid insurance $200

3 0
3 years ago
True or False. The standminus−alone cost allocation method ranks the individual users of a cost object in order of users most re
Reptile [31]

Answer:

False

Explanation:

It is 'Incremental cost allocation method' that ranks the individual users of a cost object in order of users most responsible for a common cost (the most responsible will be primary user) and then uses these rankings to allocate the costs among the users (incremental users).

Stand-alone cost allocation method allocates cost proportionately among all users based on a basis which relates to each users proportion of the total. For example the basis could be proportion of sales of responsibility centers to total sales of organization.

6 0
3 years ago
If you were starting a new business, describe at least three departments to the company that you would need right away. Why are
Natali [406]

Answer:

I would need a computer and then a laptop to work fast as I can and that will make me get more money

7 0
3 years ago
I need brainliest answer if anyone needs help comment the link here
zalisa [80]
  • <em><u>Heya friend,</u></em>
  • <em><u>Good question!</u></em>
  • <em><u>Well, brainly is a great educational platform with so many talented and kind people. We have a great community too of brainly stars, benefactors, moderators. We together do everything to make brainly great and we all have a great bonding among ourselves. We love each other a lot, brainly Benefactor team and star team and moderator team is my family type. We all live under one roof and we do help each other.</u></em>
  • <em><u>To be honest, I never felt that I am a moderator at brainly, I never felt that brainly is just an educational site. Brainly is a friendly site. A love site. A great family. Brainly has became my family,and I do love them.</u></em>
  • <em><u>Now, over to your questions-</u></em>
  • <em><u>1)We should talk to brainly members kindly, lovingly for sure. We should have a spirit of respectness, lovingneess. We should always try to be like a wise person. We should always talks politely to them. No matters on what position he is, we should just see that we are a good user and we have to form a good impression among everyone. Always try to talk something wise, funny, interesting.</u></em>
  • <em><u>2)Yeah, we should give respect to not only Leaders, benefactors, moderators. To each user we should give respect. If you will respect everyone, one will give u respect. We all say-</u></em>
  • <em><u>"TAKE RESPECT, GIVE RESPECT"</u></em>
  • <em><u>Talk to everyone respectively, then only you will be loved by others, if you will talk harshly and will Bose up yourself. No one will love you, all will hate you or will not like to talk to you. </u></em>
  • <em><u>Give respect to everyone. Understand what others want to say, then take decisions wisely and have a sweet relationship with them.</u></em>
  • <em><u>3)Yeah , we should respect others people words. What leaders, moderators, benefactor,stars says is all about your benifit, they want to make each user a good one and brainly indeed. They want you too to have a rank in brainly, a respect in brainly, a family. They do all for you, not for themselves. They got what they want, and they try to give you what you want. If you will do what you want, you will never be able to success, because in every road of life, one needs assistance and guidance. And we are here to guide you, you should respect our tips. You should come up with your doubts kindly and understand what other wanna talk to you and then take decisions wisely and patiently, always remember we do everything for each users benifit.</u></em>
  • <em><u>Love brainly! Respect brainly!</u></em>
  • <em><u>#BeBrainly</u></em>
  • <em><u>#Together we go far!</u></em>
  • <em><u>Hope it helps..!!!!</u></em>
  • <em><u>Read more on Brainly.in - https://brainly.in/question/1404139#readmor</u></em>e
3 0
3 years ago
Fill the blank ("__")
klemol [59]

The free market economy is the one where the buyers & sellers should freely select to buy or make.

The following information related to the free market economy is:

  • It should depend upon the supply & demand having no government interference.
  • In this, the buyers & sellers have the right to select for making or buying whatever they want.

Therefore we can conclude that the free market economy is the one where the buyers & sellers should freely select to buy or make.

Learn more about the economy here: brainly.com/question/11905095

3 0
2 years ago
Other questions:
  • Generating ideas by comparing specific project practices or product characteristics to those of other projects or products insid
    6·1 answer
  • Look up the following words. Give the etymology of each. State what kind of term, such as mathematical, scientific, political sc
    6·1 answer
  • 9. On August ​20, 2018​, Macak​, Co. decides to invest excess cash of $ 3 comma 000 by purchasing Buffalo​, Inc. bonds. At​ year
    6·1 answer
  • Briefly explain whether the value of U.S. exports is typically larger or smaller than the value of U.S. imports. The value of U.
    12·1 answer
  • Alpha Corporation reported the following data for its most recent year: sales, $630,000; variable expenses, $280,000; and fixed
    8·1 answer
  • Services can be______because the real people who provide them may vary in their abilities and motivations, or even their moods,
    15·1 answer
  • _____ typically includes information on the customers served, why the company exists, what the company does, the value received
    15·1 answer
  • The purchase of new car is included in: investment expenditure consumption expenditure on services consumption expenditure on no
    11·1 answer
  • Managers at the department store have _____________ because if an employee is late for a shift two times in a month, the manager
    14·1 answer
  • Consider the following for the costs of a pair of jeans: Direct material costs: $2 per yard and 3 yards are needed Direct labor
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!