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blagie [28]
3 years ago
13

Knapp Industries began business on January 1, 2018 by issuing all of its 1,550,000 authorized shares of its $1 par value common

stock for $30 per share. On June 30, Knapp declared a cash dividend of $1.25 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 310,000 of its own shares of stock for $35 per share. On December 22, Knapp resold 155,000 of these shares for $41 per share.
Required:
a. Prepare all of the necessary journal entries to record the events described above.
b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $8,000,000
Business
1 answer:
ElenaW [278]3 years ago
5 0

Journal Entries- Knapp
Date Accoutn Tittle Debit Credit
1-Jan Cash (1550000*35) $54,250,000.00
Common Stock (1550000*1) $1,550,000.00
Additional Paid in Capital - CommonS tock $52,700,000.00
30-Jun Retained Earning $1,937,500.00
Dividend Payable ( 1.25*1550000) $1,937,500.00
30-Aug Dividend Payable $1,937,500.00
Cash $1,937,500.00
1-Nov Treasury Stock $10,850,000.00
Cash (310000*35) $10,850,000.00
22-Dec Cash (155000*41) $6,355,000.00
Treasury Stock (155000*35) $5,425,000.00
Additional Paid in Capital - Treasury Stock $930,000.00
Stockholder Equity Section
Common Stock $1,550,000.00
Additional Paid in Capital - CommonS tock $52,700,000.00
Additional Paid in Capital - Treasury Stock $930,000.00
Retained Earning (8000000-1937500) $6,062,500.00
Less: Treasury Stock (10850000-5425000) -$5,425,000.00
Total Stockholder Equity $55,817,500.00
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3 years ago
What are the advantage and dis advantage of advertising for a hotel?​
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Answer:

heres are the pro/advantages and cons/disadvantages of advertising.

Explanation:

Pros                                                                             Cons

Expands the market                                     Encourages monopolistic control

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For next year, By-Way has projected sales of $435,000, costs of $254,000, depreciation of $35,000, interest expense of $22,000,
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The amount of the projected operating cash flow is $152,500

<h3>What is operating  cash flow?</h3>

Operating Cash Flow (OCF) is what measure the amount of cash generated by a company's normal business operations in its day to day activities.

Operating Cash Flow (OCF) is computed below:

Projected sales 435,000

(-) Costs                 254,000

(-) Depreciation  35,000

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Operating income  146,000

(+) Depreciation  35,000

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Projected operating cash flow $152,500

Hence, Projected operating cash flow is $152,500

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No entries shall be allowed for district meets which are not submitted to the director on or before the ____ day before the firs
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Take the ingredient list for a food item like potato chips as an example. Typically, "potatoes" will be put first because they make up the majority of the product. Probably next on the list will be "vegetable oil (sunflower, corn, and/or canola oil)," which is the least common item but boosts flavor in this situation.

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