Answer:
$85,000
Explanation:
Given that,
Shares sold = 50,000 shares of $3 par common stock for $5
Buys back = 10% of its common shares outstanding for $7 per share
Total equity on December 31 = $300,000
Balance in stockholder's equity without retained earnings:
= Beginning balance in stockholder's equity + Increase in stockholder's equity - Decrease in stockholder's equity
= $0 + (50,000 × $5) - (50,000 × 10% × $7)
= $250,000 - $35,000
= $215,000
Retained earnings on December 31:
= Total equity at December 31 - Balance in stockholder's equity without retained earnings
= $300,000 - $215,000
= $85,000
Answer:
skimming prices
Explanation:
Based on the scenario being described it can be said that it can be concluded that Timber Guitars has adopted the strategy of skimming prices. This is a a pricing strategy in which a company or marketer sets a relatively high starting price for their products in the beginning of introducing it into the market, then only after some time has passed do they begin to lower prices slowly. Which is what Timber Guitars has done by placing the guitar at a very high price and only lowering it after a good quantity were sold.
Your answer is
A.
<span> Liquidate some inventory to increase cash flow</span>
Total cost of 10000 snowboards
Per unit Total
Direct material 100 1000000
Direct Labor 30 300000
Variable overhead 45 450000
Fixed overhead 635000
Fixed selling and administrative costs 115000
Total cost of 10000 snowboards 2500000
Cost of one snowboard = Total cost of 10000 snowboards / Total number of snowboards
Cost of 1 snowboard $ 250
Thus, the cost of 1 snowboard = $ 250
Now, the selling price is set as = Total costs + 15 % on total costs
Selling price = $ 250 + (15 % × $ 250)
Selling price = $ 250 + $ 37.50
Selling price = $ 287.50 per snowboard
Answer:
The balancing figure = $28,350
Explanation:
The question is to prepare the trial balance for Crane Company for June 30, 2022
A trial balance represents a statement that contains all the debit and credit balances from the account book of an organisation. It is used to show the arithmetic accuracy of the books of account.
<u>CRANE COMPANY'S TRIAL BALANCE AT JUNE 30, 2022</u>
Accounts Title Debit ($) Credit ($)
Accounts Payable 2000
Accounts Receivable 2,680
Cash 5,810
Common Stock 17,410
Dividends 1,590
Equipment 13,340
Rent expenses 1,320
Salaries and Wages 3,610
<u>Service Revenue 8,940</u>
<u> </u><u> 28,350 28,350</u>
