answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marusya05 [52]
2 years ago
13

United Resources Company obtained a charter from the state in January of this year. The charter authorized 200,000 shares of com

mon stock with a par value of $1. During the year, the company earned $590,000. Also during the year, the following selected transactions occurred in the order given:
a. Sold 100,000 shares of the common stock in an initial public offering at $12 cash per share.
b. Repurchased 20,000 shares of the previously issued shares at $15 cash per share.
c. Resold 5,000 of the shares of the treasury stock at $18 cash per share.

Required:
Prepare the stockholders’ equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)
Business
1 answer:
Leno4ka [110]2 years ago
8 0

Answer:

See explanation.

Explanation:

Shareholders' Equity

Authorized Shares                                                200,000 Shares

Common Stock out standing (85,000 * 1) (w1)     $85,000

Treasury Stock (w3)                                              $15,000

Additional paid in capital  (w2)                             $715,000

Retained earnings                                                  $590,000

                                                                                $1,405,000

Workings

(W1)

Common stock is recorded at par value. Total number of shares outstanding are,

Outstanding = 100,000 - 20,000 + 5000 = 85000 @ $1 each

(W2)

Additional Paid in capital is the premium paid on shares,

In the initial offering of 100,000 shares, $11 per share was paid in thus bringing in a total of $1,100,000.

This amount was then used to repurchase stock

Repurchase deduction = 20,000 * 15 = $300,000

Later the stock re issue brought in a premium of 18 - 1 =$17 per share thus a total of 5000 * 17 = $85,000

This brings the balance of paid in capital as

Paid in capital = 1,100,000 - 300,000 + 85,000 = $715,000,

(W3)

Notice that when we paid for repurchase we paid the par value plus premium, the par value is 20,000 @ $1 =20,000 and after reissue it is reduced to 20,000 - 5000 = 15,000.  This is the amount of treasury stock held, which we deducted from the Additional paid in capital account.

Hope that helps.

You might be interested in
Amanda buys a ruby for $330 for which she was willing to pay $340. the minimum acceptable price to the seller, tony, was $140. a
OverLord2011 [107]
Amanda's consumer surplus is $10, since the ruby was worth $10 more than she paid for it. Tony was willing to sell the ruby for a minimum of $140, and received $330, making his producer surplus $190.
Answer: Amanda: consumer surplus of $10. Tony: producer surplus of $190
4 0
2 years ago
Which of the following is an example of a firm’s derived demand? a. Workers with higher levels of education earn more, on averag
Mademuasel [1]

Answer:

c. A tractor manufacturer’s demand for assembly-line workers is inseparably linked to the supply of tractors

Explanation:

Derived demand is when the demand for a good, service or labour is as a result of demand for another good or service.

The demand for assembly line workers is as a result of demand for tractors. If there was no demand for tractors ,there would be no need to employ assembly line workers.

I hope my answer helps you.

7 0
1 year ago
One of the four most fundamental factors that affect the cost of money as discussed in the text is the expected rate of inflatio
Leto [7]

Answer:

False

Explanation:

One of the four most fundamental factors that affect the cost of money as discussed in the text is the expected rate of inflation. It is false to say, if inflation is expected to be relatively high, then interest rates will tend to be relatively low, other things held constant.

5 0
1 year ago
Suppose that at prices of $1, $2, $3, $4, and $5 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 unit
klio [65]

Answer:

A.

Explanation:

An improve in technology will allow firms to produce in an effective way therefore, with the same resources, firms will produce more units. This will cause an increase in total supply: at the same price, firms will offer more units. In this case, at prices $1, $2, $3, $4 and $5 the new quantities will be 6,8,10,12. In the demand and supply graph, this looks as shift to the right of the supply curve (figure attached).

It is not option B because the problem says increase in quantities "at these prices". It is not option C because an increase in taxes will increase costs of production, thus firms will decrease units of production. It is not option D because changes in income will affect demand.

4 0
1 year ago
A major liquor store finds that it sells an average of 100 bottles a week of regular 750 ml bottles of Jameson Irish Whiskey. As
Semmy [17]

Answer:

  • 0.04 year
  • 200 bottles
  • 100 bottles
  • 250
  • 200

Explanation:

A)  The current order cycle length = 2 weeks

= 2 / 50 year = 0.04 year

B) The current order size

cycle time ( 2 weeks ) * demand per unit time ( 100 bottles )

= 2 * 100 bottles = 200 bottles

C) average inventory

= order size / 2 weeks = 200 / 2 = 100 bottles

D) calculate how much the liquor store spend per year on ordering

first we calculate the number of orders per year = 50 / 2 = 25

next the amount spent per year on ordering = 25 * 10 = 250

E) calculate  inventory holding costs per year

= average inventory * cost of holding per bottle

= 100 * 2 = 200

7 0
1 year ago
Other questions:
  • If a 20 percent increase in the price of red bull energy drinks results in a decrease in the quantity demanded of 25 percent, th
    15·1 answer
  • Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Ove
    9·1 answer
  • Homeyer Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 71 Manu
    10·1 answer
  • Parker Company’s balance reflected Estimated Warranty Payable of $2,000 credit at the end of 2018, the current year. During 2019
    6·1 answer
  • Utility theory is the study of the __________ or relative desirability of a particular outcome that reflects the decision maker’
    10·2 answers
  • Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average cos
    15·1 answer
  • You are evaluating two different silicon wafer milling machines. The Techron I costs $276,000, has a three-year life, and has pr
    15·1 answer
  • A company uses direct labor costs as it allocation base. Management estimates the company will incur $150,000 of direct labor co
    5·1 answer
  • In Lurnee, it takes 10 resources to produce 1 ton of cocoa and 13.5 resources to produce 1 ton of rice. In South Tyberg, it take
    12·1 answer
  • Valentina recently made a friend from another country who works as a buyer at a large business firm. They get together with a gr
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!