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
Dmitry [639]
2 years ago
9

On January 1, 2022, The Eighties Shop has 100,000 shares of common stock outstanding. The Eighties Shop incurred the following t

ransactions in 2022.
March 1 Issues 53,000 additional shares of $1 par value common stock for $50 per share.
May 10 Purchases 4,800 shares of treasury stock for $53 per share.
June 1 Declares a cash dividend of $1.40 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 2,400 shares of treasury stock purchased on May 10 for $58 per share.

Required:
Record each of these transactions.
Business
1 answer:
Anastasy [175]2 years ago
8 0

Answer:

Date        General Journal                Debit            Credit

March 1   Bank A/c                        $2,650,000

                  (53,000 × $50)

                       Share Capital A/c                            $53,000

                        (53,000 × $1)

                        Share Premium A/c                        $2,597,000

                        [53,000 × $49 ($50 - $1)}  

                (Being additional 53,000 issued shares for $50)

May 10     Treasury Stock A/c            $254,400

                (4,800 × $53)

                        Cash A/c (4,800 × $53)                  $254,400

               (Being purchase of 4,800 treasury stock for $53 )    

June 1       Retained Earning A/c        $207,480  

                 (1,53,000- 4,800) × $1.4

                          Dividend Payable A/c                   $207,480

                           [(153,000 - 4,800) × $1.4]

                 (Being cash dividend declared)

July 1        Dividend Payable A/c       $207,480

                           Cash A/c                                        $207,480

                 (Being cash dividend paid)

October 21  Cash A/c (2,400 × $58)   $139,200

                          Treasury Stock (2,400 × $53)          $127,200

                          Paid in Capital from treasury Stock $12,000

                           (2400 × $5)

                    (Being 2,400 Treasury Stock sold for $58)

You might be interested in
If the dollar contribution margin per unit is increased by 8%, total fixed expenses is decreased by 18%, and all other factors r
satela [25.4K]

Answer:

Increase

Explanation:

Since the Contribution increased and Fixed Costs have decreased, the resulting effect is an Increase in Net Operating Income. Thus, all other factors remain the same, net operating income will: Increase

8 0
2 years ago
What is the maximum amount a firm should pay for a project that will return $15,000 annually for 5 years if the opportunity cost
vampirchik [111]

Answer:

The firm should pay $46907.57 for the given project.

Explanation:

Given information:

Return = $15000 annually

Time = 5 years

Opportunity cost = 18%

The formula for payment is

PV=R(\frac{1}{OC}-\frac{1}{OC(1+OC)^t})

where, R is return, OC is opportunity cost, t is time in years.

Substitute R=15000, t=5 and OC=0.18 in the above formula.

PV=15000(\frac{1}{0.18}-\frac{1}{0.18(1+0.18)^5})

PV=46907.5653141

PV\approx 46907.57

Therefore the firm should pay $46907.57 for the given project.

8 0
2 years ago
Honesty is important to rosa. She bought a sandwich that cost $3.50. However the clerk asked her for only $3. What should rosa d
dsp73
Be honest and pay the 50 cents.
3 0
3 years ago
Read 2 more answers
If you wish to accumulate $125,000 in 7 years, how much must you deposit today in an account that pays a quoted annual interest
elixir [45]

Answer:

You need to deposit $58,481.53 today.

Explanation:

a) Data and Calculations:

Future value expected = $125,000

Period of investment = 7 years

Interest rate = 11% compounded quarterly

The amount of deposit needed today to earn $125,000 in 7 years at annual interest rate of 11% is calculated as follows:

N (# of periods)  28

I/Y (Interest per year)  11

PMT (Periodic Payment)  0

FV (Future Value)  125000

Results

PV = $58,481.53

Total Interest $66,518.47

7 0
2 years ago
Theresa and Bobbi bought a racecar together. They agreed to share all expenses and split net profits equally. There was no agree
mestny [16]

Answer:

<em>No she is not, a partner has the right to quit the partnership at any moment in a partnership at will. </em>

Explanation:

General partners get the option and ability to leave the joint venture at whatever moment, whereas limited and restricted partners are only allowed to leave the partnership in accordance with the terms of the partnership agreement.

Bobby is in accordance with the law to leave whenever, and hasn't broken any agreement.

Whenever a general or limited partner chooses to leave the joint venture, the business continues to remain unless it has been agreed by all partners to dissolve.

5 0
3 years ago
Other questions:
  • Use the following for the next five questions: The following data is given for the Walker Company: Budgeted production..........
    12·1 answer
  • A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
    13·1 answer
  • The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020: Beginni
    5·1 answer
  • assume that you provide your services in a company as its HR representative you must create the code of conduct manual for the c
    7·1 answer
  • As customers of pierre’s dress shoppe prepared their wardrobes for winter, they purchased all of the long-sleeved dresses he had
    11·1 answer
  • Novak Corp. had the following account balances at year-end: Cost of Goods Sold $61,200; Inventory $14,550; Operating Expenses $2
    8·1 answer
  • Kimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payne contr
    10·1 answer
  • Kava Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air condition
    8·1 answer
  • A list of sources that is used for in-text citations that usually appears at the end of the document is called
    13·1 answer
  • In the 2,500-year-old text the art of war, chinese general sun tzu argues that _____________ and ___________ are key components
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!