A corporation originally issued $ 6.00 par value common stock for $ 10.00 per share. It purchased the stock for $ 12.00 per shar
e. Which of the following is included in the entry to record the sale of 40 shares of treasury stock for $ 17.00 per share?
A. Treasury Stock-Common is debited for $3,300.
B. Treasury Stock-Cormmon is debited for $1,650.
C. Retained Earnings is debited for $45
D. Treasury Stock-Common is oodied for $46.
A. Treasury Stock-Common is debited for $3,300.
B. Treasury Stock-Cormmon is debited for $1,650.
C. Retained Earnings is debited for $45
D. Treasury Stock-Common is oodied for $46.
1 answer:
Answer:
Explanation:
Dr. Cr.
Cash $680
Treasury Stock $480
Additional Paid-In Capital (Treasury Stock) $200
Share was originally purchased and recorded as Treasury stock on the purchases price of $12. The Difference of $5 from purchase price and sale price of share is recorded as Additional Paid in Capital.
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Answer:
The projected Net Income is $70,784
Explanation:
The Pro- forma income Statement
Working Note:
Variable cost = Sales × 44%
= $585,000 × 44%
= $257,400
EBT (Earnings before Tax) = Sales - Variable cost - fixed cost - depreciation
= $585,000 - $257,400 - $187,000 - $51,000
= $89,600
Net Income = EBT × Tax rate
= $89,600 × 21%
= $70,784
