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Mashutka [201]
3 years ago
6

Daris Corporation is authorized to issue 1,000,000 shares of $5 par value common stock

Business
1 answer:
statuscvo [17]3 years ago
7 0

Answer:

Daris Corporation

General Journal:

Jan. 1:

Debit Incorporation fees RM2,000

Credit Cash Account RM2,000

To record the payment of incorporation fees to the state.

Jan. 15:

Debit Issue of Shares RM3,500,000

Credit Common Stock RM3,500,000

To record issue of 500,000 shares at RM7 per share.

Jan. 30

Debit Legal Fees RM8,000

Credit Issue of Shares RM3,500

Credit Additional Paid-in Capital RM4,500

To record the issue of 500 shares to settle legals fees of RM8,000

July 2:

Debit Land RM900,000

Credit Issue of Share RM700,000

Credit Additional Paid-in Capital RM200,000

To record the issue of 100,000 shares of stock for land.

Sept. 5:

Debit Treasury Stock RM105,000

Debit Additional Paid-in Capital RM45,000

Credit Cash Account RM150,000

To record the repurchase of 15,000 shares of common stock at RM10 per share.

Dec. 6:

Debit Cash Account RM121,000

Credit Treasury Stock RM77,000

Credit Additional Paid-in Capital RM44,000

To record the resale of 11,000 shares of the treasury stock at RM11 per share.

Explanation:

The Additional Paid-in Capital (APIC) or sometimes referred to as Excess Capital over Par Value is an equity account where the above and below par value of the sale and repurchase of stock is recorded.  This makes the Stock account to maintain a stable figure.  This implies that the changes caused by above and below par value is taken care in this account.  It also takes care of treasury stock above and below par value sale.

Treasury stock is a common stock contra account.  It means that the value of the treasury stock reduces the value of the common stock.  There are two methods for treating the above and below par value in treasury stock.  One method is the costing method which records the changes in the treasury stock account.  The other method is the par value method.  With this method, only the par value of treasury stock is recorded in the account.  The above and below par value changes are recorded in the Additional Paid-in Capital account.

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Ed bought $2,000 in stock shares one week before the stock price dropped $10.00. If he had waited for the price setback, he coul
Zanzabum

Answer:

He bought 40 shares.

Explanation:

<em>Step 1: Determine the initial stock price</em>

Use the expression below to determine the total initial stock price as shown;

T=S×s

where;

T=total initial stock price

S=initial stock price per share

s=number of shares

In our case;

T=$2,000

S=x

s=unknown

replacing;

2,000=x×s

s=2,000/x

<em>Step 2: Determine the final stock price</em>

Use the expression below;

F=f×s2

where;

F=final stock price=$2,000

f=final stock price per stock=(x-10)

s2=final number of shares bought=(2,000/x)+10

replacing;

2,000=(x-10){(2,000/x)+10)

2,000=x(2,000/x)+(10 x)-10(2,000/x)-100

(2,000=2,000+10 x-20,000/x-100)x

2,000 x=2,000 x+10 x²-20,000-100 x

2,000 x-2000 x=10 x²-100 x-20,000

10 x²-100 x-20,000=0

solving quadratically;

x=[100±√{100²-(4×10×-20,000)}]/(2×10)

x={100±√(10,000+800,000)}/20

x=(100±900)/20

x=1,000/20=50

Initial stock price=$50

Number of shares bought=2,000/x=2,000/50=40

He bought 40 shares.

4 0
3 years ago
Inventory is important in the supply chain for many different reasons. Why would you invest the​ company's money for inventory a
Makovka662 [10]

Answer:

All the answers are right

Explanation:

A.To provide a hedge against inflation. : in an inflationary economy, a company can invest in inventory in order to be prepared for the higher prices of raw materials to come. So they can maintain the company´s profit.

B. To tightly synchronize production and distribution processes: inventory of final products can help to minimize the effects of unexpected production problems.

C. To ensure that item cost is maximized: A company can buy a bulk of raw material since the cost of a large number of units is lower. So the final product's cost will be maximized.

D. to tightly synchronize a​ firm's production with its​ customers' demand: for example in a seasonal demand, There are certain months when the demand exceeds the production capacity. In theis case, in the lower season months, the company will be increasing the inventory in order to meet the demand when the high season comes.

6 0
3 years ago
For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units
Anna71 [15]

Answer:

The product cost for 24,500 units is $497,350.

Explanation:

The reason is that the the product cost always includes all the variable production cost and specific fixed production cost. In this scenario, direct material cost, direct labor cost, variable manufacturing overhead cost are variable production cost whereas the fixed manufacturing cost is specific fixed production cost which will form part of product cost. The remainder of the cost left is period cost.

Direct materials (24,500 * $7.7 per unit)                               $188,650

Direct labor (24,500 * $4.7 per unit)                                       $115,150

Variable manufacturing overhead (24,500 * $2.2 per unit)  $53,900

Fixed manufacturing overhead (24,500 * $5.7 per unit)      <u>$139,650 </u>

Total product costs                                                                 $497,350

7 0
3 years ago
A Best Eastern Motel is a regional motel chain. Its rooms rent for $90 per night, on average. The variable cost is $40 a room pe
alexdok [17]

Answer:

The break even point in units is 24000 rooms per year.

Explanation:

The break even point in units is a point where enough units are sold to earn a revenue that covers the total cost of the business and there is neither a profit nor a loss to the business. The break even point in units can be calculated as follows,

Break even in units = Fixed cost / Contribution margin per unit

Where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

So,

Contribution margin per unit = 90 - 40 = $50

Break even in units = 1200000 / 50    =  24000 units

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3 years ago
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