Assume that a company paid $ 9 per share to purchase 1 comma 600 shares of its $ 2 par common stock as treasury stock. The purchase of treasury stock.
Answers
Answer:
decreased total equity by $14,400
Explanation:
The treasury stock reduced the balance of the stockholder equity as the issuing company buys this stock back.
Given that
Number of shares purchased = 1,600 shares
Paid per share = $9
Common stock = $2
So, the treasury stock would be
= Number of shares purchased × per share
= 1,600 shares × $9
= $14,400
The journal entry would be
Treasury Stock A/c Dr $14,400
To Cash A/c $14,400
(Being treasure stock is purchased for cash)
Related Questions
Interest is the cost of borrowing. a. Trueb. False
Max has a written agency agreement with Rufus in which Max will receive all of the listings in the subdivision that Rufus purchased (with Max’s representation) and is developing. One day when Rufus is visiting the site of the subdivision, a work truck accidentally runs him over and he's seriously injured. Rufus can no longer run the development of the subdivision. What happens to Max’s agency coupled with interest?
The purchasing power of people with _____ decreases a lot when inflation occurs. rising incomesfixed incomes
The lower-of-cost-or-market rule requires a company to ________.
Answers
Answer: short selling
Explanation: In simple words, short selling refers to the process in which an individual borrows stock from its holder with the promise of giving it back after a specific time and at a specific price, after borrowing he or she sells the stock at the current market price and expects that the price of stock will decrease in future.
The borrower then purchases the stock at a lower price and gives it back to the lender with the margin profit in his or her pocket. Short selling works like a speculation but only market experts do such activity due to high risk involved.
Such processes are of high value to the market as they result in creation of liquidity.
Answers
Answer:
$930 was invested in account-1 at 7% interest rate and $11,070 was invested in account-2 at 4% interest rate.
Explanation:
Let the amount invested in account-1 be x and amount invested in account-2 be y.
Total mount invested in both accounts = $12,000
x + y = $12,000....[1]
Simple interest earned from account-1 at 7% interest:
Simple interest earned from account-2 at 4% interest:
Total interest earned = $507.90
S.I + S.I' = $507.90
0.07x + 0.04y = $507.90....[2]
Solving both equations , we get x and y :
y = $11,070
x = $930
$930 was invested in account-1 at 7% interest rate and $11,070 was invested in account-2 at 4% interest rate.
Answers
Answer:
transaction balances
Explanation:
Transaction balances refers to the cash needed to pay daily transactions.
When a company has excess cash it means that this cash is setting still without producing any benefit. Cash is the most liquid asset, since it's already money. But cash doesn't earn any money, it even loses value due to inflation.
A company should have the minimum amount of money needed as cash, just enough to cover its daily needs (transaction balance). This way it can invest remaining cash in something that generates interest, doesn't matter if the interest rte is very small, something is better than nothing.
Answers
Answer: Option B
Explanation: In simple words, a corporation refers to an entity which has its own separate legal identity from its owners. Generally these entities works on a very large scale and the ownership rights of such companies is divided into many shares which are hold by several different individuals.
The holders of stock of such entities gets return in form of dividend and can resell their shares for capital gain in an open market of securities. As the owner and the company are two different entities the owner is not liable to report for the action of selling shares to the company.
Answers
Answer:
The correct answer is A
Explanation:
Study is conducted in order to estimate the proportion of the residents of the Florida, who were willing to spend the dollars on protecting the coastline from the disasters.
The population is defined as the group of individuals or people who are from a specific geographical area and occupies the same species, and those are the residents of the Florida, which counted to 4200, these residents were surveyed in order to conduct the study.
Answer:
The correct answer is A
Explanation: Study is conducted in order to estimate the proportion of the residents of the Florida, who were willing to spend the dollars on protecting the coastline from the disasters.
The population is defined as the group of individuals or people who are from a specific geographical area and occupies the same species, and those are the residents of the Florida, which counted to 4200, these residents were surveyed in order to conduct the study.