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Romashka-Z-Leto [24]
3 years ago
8

Prior to February 28, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common st

ock on April 30 for $40 per share. On June 20, it reissued 50 of these shares at $46 per share. On September 1, it reissued 20 of the shares at $38 per share. What is the balance in the Treasury Stock account on November 2
Business
1 answer:
liubo4ka [24]3 years ago
3 0

Answer: $2,760

Explanation:

The Treasury account is for a company's own shares that it buys back.

Company purchased 100 shares for $40:

= 100 * 40

= $4,000

June 20, they sold 50 of these shares. It will be deducted from the Treasury account at cost. Balance is:

= 4,000 - (50 * 40)

= $2,000

On September 1, 20 shares at $38 were reissued. Balance in Treasury Account goes to:

= 2,000 + (20 * 38)

= $2,760

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A firm creates value by?
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Paying more cash to its creditors and stockholders than the amount it received from them (1)

Explanation:

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3 years ago
Explain why the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Advisory Board (FASAB) inc
Irina18 [472]

Answer:

Please refer the reason in detail below

Explanation:

For state and local government entities, additional standards are promulgated by the Governmental Accounting Standards Board ("GASB") and for the federal government, additional standards are promulgated by the Federal Accounting Standards Advisory Board ("FASAB").

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3 years ago
The market for plywood is characterized by the following demand and supply equations: QD = 800 – 10P and QS = 50P – 1,000, where
Sunny_sXe [5.5K]

Answer:

$3,750

Explanation:

at $25 per sheet of plywood:

total demand = 800 - (10 x 25) = 800 - 250 = 550

total supply = (50 x 25) - 1,000 = 1,250 - 1,000 = 250

the equilibrium price is:

800 - 10P₁ = 50P₁ - 1,000

1,800 = 60P₁

P₁ = 1,800 / 60 = 30

the equilibrium quantity (Q₁) is:

Q₁ = 800 - (10 x 30) = 800 - 300 = 500

at 250 units, the price should be:

250 = 800 - 10P₂

10P₂ = 550

P₂ = $55

total deadweight loss = 0.5 x  (P₂ - P₁)  x (Q₂ - Q₁) = 0.5 x  ($55 - $25)  x (250 - 500) = 0.5 x $30 x -250 = -$3,750

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