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nikdorinn [45]
3 years ago
14

Albee Township’s fiscal year ends on June 30. Albee uses encumbrance accounting. On April 5, year 1, an approved $1,000 purchase

order was issued for supplies. Albee received these supplies on May 2, year 1, and the $1,000 invoice was approved for payment. What journal entry should Albee make on April 5, year 1, to record the approved purchase order?
Business
1 answer:
Mice21 [21]3 years ago
5 0

Answer:

Encumbrances $1000

Reserved for encumbraces $1000

Explanation:

Encumbrance is in the debit because is the money that we have destined for the purchase and  since we have to get the money from our funds Reserved for encumbrances is in the credit.

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A corporation issued 5,000 shares of $20 par value common stock for $120,000 cash. A corporation issued 2,500 shares of no-par c
lapo4ka [179]

Answer:

Journal Entries Transaction

1.

Dr. Cash                                                                    $120,000

Cr. Common stock                                                   $100,000

Cr. Paid-in capital excess of par, Common stock  $20,000

2.

Dr. Company expenses                                                        $22,000

Cr. Common stock, $1 stated value                                     $2,500

Cr. Paid-in-capital excess of stated value common stock $19,500

3.

Dr. Company expenses                 $22,000

Cr. Common stock, no-par value  $22,000

4.

Dr. Cash                                                                   $53,250

Cr. Preferred stock, $25 par value                         $31,250

Cr. Paid-in capital excess of par preferred stock  $22,000

Explanation:

1. The Excess of common stock and cash received will be recorded in the Paid in capital in excess of par value, common Stock account.

Common Stock, $20 Par Value = 5,000 shares × $20 per share = $100,000

Paid in capital in excess of par value, common Stock = $120,000 – $100,000 = $20,000

2.The Excess of common stock and cash received will be recorded in the Paid in capital in excess of stated value, common Stock account.

Common stock = $1 x 2,500 = $2,500

Paid-in capital in excess of stated value, common stock = $22,000 - $2,500 = $19,500

4. The Excess of common stock and cash received will be recorded in the Paid in capital in excess of par value, common Stock account.

Preferred Stock, $25 Par Value = 1,250 shares × $25 per share = $31,250

Paid in capital in excess of par value, preferred Stock = $53,250 – $31,250 = $22,000

6 0
2 years ago
In terms of the increasing complexity in media buying and selling, _____ often employ(s) communications vehicles outside traditi
Cerrena [4.2K]

Answer:

Value-added packaging

Explanation:

Value-added packaging is self-explanatory, you try to make a packaging that adds more value to the customer. Since every customer will see the package, you can reach them more than traditional media planning. The value itself can vary widely. By making an artistic design, the customer can better impression about the product. A premium looked packaging will show more prestige to the customer. Some creative packaging can efficiently save space while still protecting the product.

3 0
3 years ago
The stockholders' equity accounts of Bramble Corp. on January 1, 2022, were as follows.
damaskus [11]

Answer:

Bramble Corp.

1. Journal Entries:

Feb. 1 Debit Cash $27,000

Credit Common Stock $18,000

Paid in excess - Common $9,000

To record the issue of 4,500 shares of common stock at $6 per share.

Mar 20: Debit Treasury Stock $6,300

Credit Cash $6,300

To record the purchase of 900 shares of treasury stock at $7 per share.

Oct. 1: Debit Dividends: Preferred $18,900

Credit Dividends payable $18,900

To record the declaration of 7% cash dividend on preferred stock.

Nov. 1: Debit Dividends payable $18,900

Credit Cash $18,900

To record dividend paid on preferred stock.

Dec. 1: Debit Dividends: Common Stock $112,050

Credit Dividends Payable $112,050

To record the declaration of dividend.

Dec. 31 Debit Dividends payable $112,050

Credit Cash $112,050

To record the payment of dividends.

Closing Journal Entries:

Dec. 31 Debit Income summary $252,000

Credit Retained Earnings $252,000

To close net income to retained earnings.

Debit Retained Earnings $130,950

Credit Dividends $18,900

Credit Dividends - Common $112,050

To close dividends to retained earnings.

2. Stockholders' Equity Section of the Balance Sheet at December 31, 2017:

Preferred Stock (7%, $100 par noncumulative, 4,500 shares authorized)

Issued and outstanding, 2,700 shares = $270,000

Common Stock ($4 stated value, 270,000 shares authorized)

Issued 229,500 shares at $4 = $918,000

Paid-in Capital In Excess of Par Value-Preferred Stock = $13,500

Paid-in Capital in Excess of Stated Value-Common Stock $441,000

Retained Earnings $740,250

Treasury Stock (5,400 common shares) ($42,300)

Total common equity       $2,070,450

Total equity = $2,340,450

3. Payout ratio:

= Total dividends/Net Income

= $130,950/$252,000

= 0.52

Earnings per share

Earnings after preferred dividends/Outstanding common stock

= $233,100/224,100

= $1.04 per share

Return on Common Stockholders' equity:

= $233,100/ $2,070,450 * 100

= 11.26%

Explanation:

a) Data

Preferred Stock (7%, $100 par noncumulative, 4,500 shares authorized)

Issued and outstanding, 2,700 shares = $270,000

Common Stock ($4 stated value, 270,000 shares authorized)

Issued 225,000 shares at $4 = $900,000

Paid-in Capital In Excess of Par Value-Preferred Stock = $13,500

Paid-in Capital in Excess of Stated Value-Common Stock $432,000

Retained Earnings $619,200

Treasury Stock (4,500 common shares) $36,000

Transaction Analysis:

Feb. 1 Cash $27,000 Common Stock, 4,500 shares $27,000

Mar 20: Treasury Stock $6,300 Cash $6,300

Oct. 1: Dividends: Preferred $18,900 Dividends payable $18,900

Nov. 1: Dividends payable $18,900 Cash $18,900

Dec. 1: Dividends: Common Stock $112,050 Dividends Payable $112,050

Dec. 31 Net Income = $252,000

Dec. 31 Dividends payable $112,050 Cash $112,050

Common Stock shares:

Beginning balance = 225,000

Treasury stock              (4,500)

Issued                            4,500

Treasury stock                (900)

Outstanding shares  224,100

Retained Earnings    $619,200

Net Income                252,000

Less Dividends:

Preferred stock            18,900

Common stock          112,050

Retained Earnings $740,250

Treasury stock (4,500 + 900) = 5,400 shares $42,300 ($36,000 + 6,300)

6 0
2 years ago
On january 1 of the current year, jimmy's sandwich company reported stockholders’ equity totaling $132,500. during the current y
Georgia [21]
<span>The change in the stockholders' equity during the given year was $111,000. Working out the math, if you take the $132,500 reported investor equity at the beginning of the year and add the $115,000 in total revenues to that, minus the $104,500 in expenses and $39,000 in cash dividends you get $104,000. Take the total calculated assets of $215,000 at the the end of the year, subtract the difference between $215,000 and $104,000 and the answer is $111,000.</span>
4 0
3 years ago
A company purchased a commercial dishwasher by paying cash of $5,000. The dishwasher's fair value on the date of the purchase wa
Fed [463]

Answer:

$5,700

Explanation:

Purchased of a commercial dishwasher + Incurred transportation costs+ Installation fees= Total recorded amounts

$5,000 + $400 + $300 = $5,700.

Therefore the amount that the company will record the dishwasher is $5,700 because the parking ticket should be expensed as incurred due to the fact that it is not a cost necessary to get the asset ready for use.

7 0
3 years ago
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