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Blizzard [7]
2 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]2 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.

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1. Explain the concept of opportunity cost with an appropriate example.<br>​
inn [45]

Answer:

Concept & example of Opportunity Cost

Explanation:

Opportunity Cost is the cost of next best alternative foregone, while choosing an alternative. This arises because of 'choice' problem, due to unlimited wants & limited resources - having alternative uses.

Eg : If I can have 2 chapatis or a bowl of rice. And, I eat a bowl of rice. Then, 'opportunity cost' of a rice bowl is - the next best available '2 chapattis' foregone for the former.

4 0
2 years ago
At the beginning of 2018, England Dresses has an inventory of $140,000. However, management wants to reduce the amount of invent
Bad White [126]

Answer:

purchases = 160000

Explanation:

given data

beginning inventory = $140,000

amount of inventory on hand = $80,000

net sales = $400,000

gross profit rate = 40%

solution

we first Computation of cost of goods sold  hat is

Gross profit rate = \frac{gross profit}{net sales} × 100

= \frac{gross profit}{400000} = = \frac{40}{100}

= 100 Gross profit = 16000000

so

Gross profit = 160000

and

Cost of goods sold is = sales - gross profit

so

Cost of goods sold = 400000 - 160000

Cost of goods sold = 240000

and

Cost of goods sold = opening inventory + purchases - closing inventory  

so put here value

240000 = 140000 + purchases - 60000

so purchases = 160000

7 0
3 years ago
Beasley, Inc., reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 330,000 Income tax expe
dalvyx [7]

Answer:

The preparation of the multiple-step income statement is presented below:

Explanation:

The preparation of the multiple-step income statement is presented below:

                                        Beasley, Inc

                     Multiple-step income statement

                            December 31, 2021

Sales revenue                 $330,000

Less: Cost of goods sold  -$129,000

Gross profit                      $201,000

Less: Operating expenses

Salaries expense $38,000

Advertising expense $21,000

Utilities expense $43,000

Total operating expenses -$102,000

Operating income             $99,000

Non operating income or others

Less: Interest expense          $10,000

Total non operating income $10,000

Income before taxes         $89,000

Less: income tax expense -$35,000

Net income                           $54,000

3 0
3 years ago
Tyson Corporation bought raw materials on April 23, 2012 and also on July 2, 2012. Products produced in the months of May were s
exis [7]

Answer:

2. the inventory acquired on April 23 with the products sold

Explanation:

Tyson Corporation

<em>As the company uses FIFO it would associate the sales with the inventory bought earliest. FIFO means first in first out the materials bought first would be sold first . The materials bought later would be sold later. In this situation the April 23 inventory is the first purchase so it would be associated with the products sold first in July. </em>

So option 2 is the best option indicating the first purchase sold first.

5 0
3 years ago
Read 2 more answers
Which characteristics should a nurse focus on to become an effective transformational leader?
meriva

Effective communication is a critical component of successful transformational leadership in nursing.

Open, sincere communication is necessary for personnel to understand their responsibilities and the objectives they are working toward. A nurse leader's commitment to others, including the staff, families, and patients, demonstrates to others that she or he is not only in a leadership position for personal gain but also for the benefit of those being led.

These leaders empower people to share a common vision and objective for the organization rather than using their position of authority to enforce change.

To know more about communication, click here:-

brainly.com/question/22558440

#SPJ4

6 0
2 years ago
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