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Stella [2.4K]
3 years ago
8

During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation: a. Feb. 1 R

epurchased 230 shares of the company's own common stock at $27 cash per share. b. Jul. 15 Sold 130 of the shares purchased on February 1 for $28 cash per share. c. Sept. 1 Sold 100 of the shares purchased on February 1 for $26 cash per share. Required: 1. Prepare the journal entry required for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
sattari [20]3 years ago
5 0

Answer:

a. Feb. 1

Treasury Shares $6,210 (debit)

Cash $6,210 (credit)

b. Jul. 15

Cash $3,600 (debit)

Common Shares $3,600 (credit)

c. Sept. 1

Cash $2,600 (debit)

Common Shares $2,600 (credit)

Explanation:

The purchase of company own shares is known as <em>Treasury Shares</em>.This decreases the equity element (Treasury Shares) and decreases the Assets of Cash.

Issue of Company own shares increases the Equity element (Common Shares) and decreases the Assets of Cash.

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Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted                                       92000

X Fair value on date of grant                          5

Total compensation expense                       460000

Years                                                                    3    

Compensation expense per year 1                       53333

Therefore, The amount of Compensation expense to Year 1 is $153,333.

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Laura received a grant that will pay for 30% of her annual estimated tuition and a scholarship that will pay for her books. What
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2 years ago
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Alpha Corporation reported the following data for its most recent year: sales, $670,000; variable expenses, $420,000; and fixed
MariettaO [177]

Answer:

the degree of operating leverage is 5

Explanation:

The computation of the degree of operating leverage is given below:

= Contribution margin ÷ EBIT

= (Sales - Variable expense) ÷ (Sales - Variable expense - Fixed expense)

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3 0
2 years ago
Pierce Company issued 11% bonds, dated January 1, with a face amount of $800,000 on January 1, 2021. The bonds sold for $739,816
sdas [7]

Answer:

unrealized gain from change in market value = $10,617

Explanation:

Bonds carrying value = $739,816

amortization of bond discount = ($739,816 x 6%) - ($800,000 x 5.5%) = $389

amortization of bond discount = ($740,205 x 6%) - ($800,000 x 5.5%) = $412

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Lerner Co. had 200000 shares of common stock, 20000 shares of convertible preferred stock, and $600000 of 10% convertible bonds
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Answer:

Basic EPS=$1.08                

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