Barkley’s Resort had 2,000 shares of $20 par value common stock outstanding. On June 1, Barkley’s purchased 200 shares of treasury stock at $21 per share and later reissued them for $22 per share. Which amount of profit from the reissuance will be reported?

Answers

Answer 1
Answer:

Answer:

NONE

Explanation:

The treasury stock sales increase additional paid-in capital treasury stock. It do not generate net income the stokc are part of equity transactions. They cannot generate a gain, the differnece in value betwene cost and reissuance of the shares will be adjusted against additional paid-in capital Treasu Stock as state before.


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In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 50 persons working an average of 2,500 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment 494, 000 Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs 50,000 Total estimated overhead costs $1,500, 000 $ 333, 200 128,000 154, 000 102,000 82, 000 74,000 82,800 At the end of 2017, records show the company incurred $1,600,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $618,000, Job 202, $577,000; Job 203, $312,000; Job 204, $730,000, and Job 205, $328,000. In addition, Job 206 is in process at the end of 2017 and had been charged $31,000 for direct labor. No jobs were in process at the end of 2016. The company's predetermined overhead rate is based on direct labor cost
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Clovix Corporation has $50 million in​ cash, 10 million shares​ outstanding, and a current share price of $30. Clovix is deciding whether to use the $50 million to pay an immediate special dividend of $5.00 per​ share, or to retain and invest it at the​ risk-free rate of 10% and use the $5.00 million in interest earned to increase its regular annual dividend of $0.50 per share. Assume perfect capital markets. a. Suppose Clovix pays the special dividend. How can a shareholder who would prefer an increase in the regular dividend create it on her​ own? b. Suppose Clovix increases its regular dividend. How can a shareholder who would prefer the special dividend create it on her​ own?
Duke Energy has 14 coal sites throughout the state of North Carolina. Removing the coal ash from the sites has high costs today and provides possible future benefits. You are tasked with advising the governor of North Carolina on whether to require Duke Energy clean up all of its coal ash sites. The benefit of cleaning up the sites is the reduced risk of a potential spill and the costs associated with a spill.All numbers are in real dollars (inflation corrected) and are expressed in present value terms (no need to discount- this has been done for you). Here are the facts: Cost of cleaning up coal ash sites is $30 million today. If the coal ash is not cleaned up a. There is a 10% chance the coal ash ponds flood and causes $70 million dollars in damages. b. There is a 20% chances the coal ash seeps into the ground water causing $100 million in damages. c. There is a 70% chance the coal ash sites cause no damage to the state of North Carolina. 1. What is the expected benefit of cleaning up the coal ash site (i.e. how much do we expect to avoid in future damages)? 2. What sort of analysis would you undertake to advise the governor? Would you recommend the governor require Duke clean up the coal ash sites? (no need to complete calculation, just write the formula used for decision making)?
In a period of rising prices, the inventory method which tends to give the highest reported net income is:a. base stock. b. first-in, first-out. c. last-in, first-out. d. weighted-average.

Other things the same, a fall in an economy's overall level of prices tends to a. raise both the quantity demanded and supplied of goods and services.
b. raise the quantity demanded of goods and services, but lower the quantity supplied.
c. lower the quantity demanded of goods and services, but raise the quantity supplied.
d. lower both the quantity demanded and the quantity supplied of goods and services.

Answers

Answer:

b. raise the quantity demanded of goods and services, but lower the quantity supplied.

Explanation:

The law of demand shows an inverse relationship between price and quantity demanded. It states that if the price of goods and services decreases, the demand will increase. This is because a lower price increasing the purchasing power of buyers. On the other hand, the law of supply states shows that price and quantity supplied will move in the same direction; it states that if the price of goods and services decrease, the quantity supplied will also decrease.

Roland industries purchased $2,200 worth of inventory on account on august 6th. the terms were 2/15, n/eom. roland industries also paid freight charges of $110 on august 7th. roland industries was granted a $190 purchase allowance for slightly damaged goods. prepare the journal entry on august 15th when roland industries pays the invoice in full.

Answers

Journal entry on August 15th for Roland industries for payment of the invoice in full:


It is given that Roland industries purchased $2,200 worth of inventory on account on august 6th. Roland industries were granted a $190 purchase allowance for slightly damaged goods. It means the net amount of invoice is (2200-190) = $2,010. We are also given that the terms were 2/15, n/eom. Now the company paid the invoice on 15th August, it means it shall get the discount of 2% and the net amount to be paid shall be = 2010- (2010*2%) =  $1,969.80


The Journal entry on August 15th for Roland industries for payment of the invoice in full shall be as follows:

Account Payable Debit $2,200

Inventory Credit $190

Purchase Discount Credit $40.2

Cash Credit $1,969.80

(Being payment made in full and discount received)



Should individuals have to pay more in taxes than large corporations?

Answers

In 2017, human beings paid $1,587.12 billion in income tax. Corporations paid $297.048 billion. We bloodbags still paid a lot more than the moneymaking business entities, but it was only about five times more instead of the eight times more we are now paying.

Trade Mart has recently had lackluster sales. The rate of inventory turnover has? dropped, and the merchandise is gathering dust. At the same time, competition has forced AquariumAquarium's suppliers to lower the prices that Aquarium will pay when it replaces its inventory. It is now December 31, 2016, and the current replacement cost Aquarium's ending inventory is $75,000 below what Aquarium actually paid for the goods, which was $200,000.Before any adjustments at the end of the? period, the Cost of Goods Sold account has a balance of $$820,000.
Requirements:
a. What accounting action should Aquarium take in this situation?
b. Give any journal entry required.
c. At what amount should Aquarium report Inventory on the balance? sheet?
d. At what amount should the company report Cost of Goods Sold on the income? statement?
e. Discuss the accounting principle or concept that is most relevant to this situation.

Answers

Answer:

a. What accounting action should Aquarium take in this situation?

the balance of inventory account should decrease to match the replacement cost.

b. Give any journal entry required.

Dr Cost of goods sold 75,000

    Cr Inventory 75,000

c. At what amount should Aquarium report Inventory on the balance? sheet?

Inventory = $200,000 - $75,000 = $125,000

d. At what amount should the company report Cost of Goods Sold on the income statement?

Cost of goods sold = $820,000 + $75,000 = $895,000

e. Discuss the accounting principle or concept that is most relevant to this situation.

US GAAP states that companies must use the lower of cost or market rule, which means that inventory must be recognized at the lowest cost either original purchase cost or market value.

The cost of direct materials transferred into the Rolling Department of Kraus Company is $3,000,000. The conversion cost for the period in the Rolling Department is $462,600. The total equivalent units for direct materials and conversion are 4,000 tons and 3,855 tons respectively. Determine the direct materials and conversion costs per equivalent unit.

Answers

Answer:

the direct material & conversion cost per equivalent unit is $750 per ton and $120 per ton

Explanation:

The calculation of the direct material & conversion cost per equivalent unit is given below:

Direct materials per equivalent unit is

= $3,000,000 ÷ 4,000 tons

= $750 per ton

And,  

Conversion costs per equivalent unit is

= $462,600 ÷ 3,855 tons

= $120 per ton

Hence, the direct material & conversion cost per equivalent unit is $750 per ton and $120 per ton

Compared to a perfectly competitive firm having the same cost curves, a monopolistically competitive firm ________ output and ________ prices.

Answers

Answer:

Reduces

Raises

Explanation:

Compared to a perfectly competitive firm having the same cost curves, a monopolistically competitive firm reduces output and raises prices.

The topic that explains this is economic efficiency and resource allocation.

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