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
Blizzard [7]
3 years ago
15

Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 130 shares of its common st

ock on May 1 for $6,500. On July 1, it reissued 65 of these shares at $53 per share. On August 1, it reissued the remaining treasury shares at $48 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2
Business
1 answer:
MakcuM [25]3 years ago
5 0

Answer:

Fortune Company

There is a balance of ($65) in the Paid-in Capital, Treasury Stock account on August 2.

However, this balance will be transferred to the Additional Paid-in Capital account at year-end, since there are no outstanding shares for the Treasury Stock account.

Explanation:

a) Data and Calculations:

May 1 Repurchase of 130 shares (Treasury Stock) = $6,500

July 1 Reissue of 65 shares at $53 per share =          (3,445)

August 1 Reissue of 65 shares at $48 per share =     (3,120)

August 2, Balance in the Paid-in Capital =                     ($65)

b) The Treasury Stock account is a contra Paid-in Capital account which records transactions involving the repurchase and reissue of treasury shares.  Treasury shares represent the company's own shares which are repurchased from its investors.

You might be interested in
A 63-year-old man presents to the office with hematuria, hesitancy, and dribbling. Digital rectal exam (DRE) reveals a moderatel
storchak [24]

Answer:

A 63-year-old man presents to the office with hematuria, hesitancy, and dribbling.

Digital rectal exam (DRE) reveals a moderately enlarged prostate that is smooth.

The PSA is 1.2.

The most appropriate management strategy to follow at this time is:

Explanation:

This 63 year-old-man is at  his elderly stage, meaning that it may have brought the enlargement of the prostate, as the DRE revealed, squeezing the urethra moderately and causing difficulty with urination such as a intermittent flow or dribbling, hematuria and hesitancy, so an urine flow study might be helpful to detect reduced urine flow associated with BPH (Benign Prostatic Hyperplasia).

Although his PSA level of 1.2 nanograms per milliliter (ng/mL) of blood is still in the normal range, a test must be performed to determine how fast is the PSA level is increasing, as it is associated with prostate cancer.

A questionnaire must be filled out to determine the type and severity of symptoms and if they have impacted his routine life.

Digital rectal examination (DRE): The physician inserts a gloved finger into the rectum (located next to the prostate) and feels the back of the prostate. Prostate cancers can sometimes be detected as lumps or bumps on the prostate here.

Depending on the results the patient could get a cystoscopy, which is a test that allows the physician to inspect the inside of the prostate, urethra channel and bladder, using a mini-camera inserted within a thin tube.

If the doctor finds cancer suspicious data, he might order a transrectal ultrasound, a transabdominal ultrasound or a prostate magnetic resonance imaging (MRI).

BPH is the most common urologists diagnosed disorder of the prostate gland in males between the ages of 45 and 76.

7 0
4 years ago
Companies HD and LD are both profitable, and they have the same total assets (TA), total invested capital, sales (S), return on
jarptica [38.1K]

Answer:

Companies HD and LD

Since Company HD has the higher total debt to total capital ratio, the statement that is CORRECT is:

B) Company HD has a higher return on equity than company LD.

Explanation:

Return on Equity (ROE) is a financial measure of how well a company's management deploys shareholders' capital.  A higher ROE can be a result of high financial leverage, meaning that more debt than equity is being used to generate the returns.  Note that too much leverage poses solvency risks.

7 0
4 years ago
Logan Corporation issues 40,000 shares of $50 par value preferred stock for cash at $60 per share. In the stockholders' equity s
SpyIntel [72]

Answer:

c. under both the capital stock and additional paid-in capital sections

Explanation:

In the given question, the corporation issued 40,000 shares for $50 par value and for cash $60 per share

So, it affects the two accounts, one is preferred stock and the second is additional paid-in capital.  

The preference stock should be increased by $2,000,000 (40,000 shares × $50)  

Whereas the difference of $400,000 (40,000 shares × $10) would be transferred to additional paid in the capital account

And, the preferred stock has come under a capital stock account that's why we considered both the things

4 0
3 years ago
Sunshine Cell Phone Company offers to buy a laser printer, with a case of paper and an extra cartridge, from Office Products, In
amm1812
It would be B, since he’s not rejecting it, and he states his counter off which is “no paper and no extra cartridge “
6 0
3 years ago
According to ______, market participants immediately change their actions in response to anticipated price-level changes, such t
ZanzabumX [31]

Answer:

rational expectations theory

Explanation:

Rational expectations theory is the tendency of people to behave in a rational manner when presented with economic decisions. It is a widely used theory in economics.

It's states that decisions are made primarily on the basis of information available to them, human rationality and past experience.

So when market participants immediately change their actions in response to anticipated price-level changes such that no changes in real output occur, they are acting according to the rational expectations theory

3 0
3 years ago
Other questions:
  • What is the term for the relationship between printer and paper?
    14·1 answer
  • The assumption(s) made to construct a kinked-demand oligopoly model is (are) that: A. all price changes made by any firm will be
    12·1 answer
  • Which statement about American prisons is correct?
    10·1 answer
  • Cost allocation is:_____.A. the assignment of indirect costs to the chosen cost object B. the process of tracking both direct an
    13·1 answer
  • Samantha, a famous artist, has a contract with Alec to paint his portrait for $6,000. Samantha is very busy and wants to delegat
    13·1 answer
  • fvgvnjfwkfdhbdhifbdfbfibhshbfdbfsbvdshbvsdabkhvsdbkhdskhbvdsknbdvs,nvzbkjvzbvm x dn dhaefweaw uef aef
    8·2 answers
  • Consideration in a bilateral contract always involves both:______.A. A legal benefit and a legal detriment.B. A legal waiver and
    13·1 answer
  • Advertising on a website is considered mainly what type of advertising media.
    7·1 answer
  • Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that follows. Assume that all c
    10·1 answer
  • A public good rev: 04_09_2018 Multiple Choice generally results in substantial negative externalities. can never be provided by
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!