Horton Co. was organized on January 2, 2014, with 500,000 authorized shares of $10 par value common stock. During 2014, Horton had the following capital transactions: January 5-issued 375,000 shares at $14 per share.
July 27-purchased 25,000 shares at $11 per share.
November 25-sold 18,000 shares of treasury stock at $13 per share.

Horton used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2014?

Answers

Answer 1
Answer:

Answer:

The balance in the Paid-in Capital from Treasury Stock account at December 31, 2014 is $36,000

Explanation:

The computation of the balance in the treasury stock account is shown below:

= Number of shares sold × (Selling price of share - purchase price of share)

= 18,000 shares × ($13 per share - $11 per share)

= 18,000 shares × $2 per share

= $36,000

The other items which are mentioned like issued shares, authorized shares are irrelevant because we have to compute for the treasury stock, not for the common stock. So, these parts would be ignored in the computation part.


Related Questions

Employees at an insurance company were complaining about the form used for evaluating employee effectiveness. Their complaints were related to ________ justice. procedural interpersonal informational distributive
In a closed economy, public saving is the amount of a. income that households have left after paying for taxes and consumption. b. spending that the government undertakes in excess of the taxes it collects. c. income that businesses have left after paying for the factors of production. d. tax revenue that the government has left after paying for its spending.
] How should a gain from the sale of used equipment for cash be reported in a statement of cash flows using the indirect method?
Question 2 of 10 What is the main advantage of having a skill set with a high market value? O A. Workers are more productive per hour using those skills. O B. Worker organizations have a major need for those skills. O C. Employers are willing to pay more for those skills. O D. There are fewer regulations restricting those skills.​
When creating a company's security policy, it is not necessary that the scope align with the company's annual information security budget. True False

The December 31, 2018, balance sheet of Whelan, Inc., showed $136,000 in the common stock account and $2,610,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $146,000 and $2,910,000 in the same two accounts, respectively. The company paid out $141,000 in cash dividends during 2019.Required:

What was the cash flow to stockholders for the year?

Answers

Answer:

$169,000 negative

Explanation:

Equity = Common stock + Additional paid in surplus

Total equity at beginning= Common stock + Additional paid in surplus

=136,000+2,610,000=$2,746,000

Total equity at end= Common stock + Additional paid in surplus

=146,000+2,910,00)=$3,056,000

Hence new equity = Total equity at End - Total equity at beginning

3,056,000-2,746,000=$310,000

Cash flow to stockholders = Dividends paid - New equity

= 141,000-310,000

= -169,000

=$169,000 negative

Geographically dispersed work groups no longer pose additional communication challenges given todays technology.a) true
b) false

Answers

The given statement is False Option(b) is correct.

What are work groups?

A Working group, or working party, is a group of specialists working together to accomplish indicated objectives. The groups are space explicit and center around conversation or action around a particular branch of knowledge.

A working group's presentation is comprised of the singular consequences of all its singular individuals. A group's presentation is comprised of both individual outcomes and aggregate outcomes. In enormous associations, working groups are predominant, and the attention is dependably on individual objectives, execution and accountabilities.

Working group individuals don't get a sense of ownership with results other than their own. Then again, groups require both individual and common responsibility. There is more data sharing, more group conversations and discussions to show up at a group choice The life expectancy of a working group can endure anyplace between a couple of months and quite a long while. Such groups tend to foster a semi extremely durable presence when the relegated task is achieved consequently the need to disband or gradually eliminate the working group when it has accomplished its objective.

Therefore Option(b) is correct.

Learn more about work group here:

brainly.com/question/28044374

#SPJ2

The answer is false

Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000
Desired inventory (units), August 31 9,000
Expected sales volume (units), August 75,000

For each unit produced, the direct materials requirements are as follows:
Material A ($5 per lb.) 3.0 lbs.
Material B ($18 per lb.) 0.5 lb.

The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is ______.

a.$1,170,000 for A; $702,000 for B
b.$1,080,000 for A; $1,296,000 for B
c.$1,080,000 for A; $648,000 for B
d.$1,125,000 for A; $675,000 for B

Answers

Answer:

c.$1,080,000 for A; $648,000 for B

Explanation:

For computing the total direct material purchase first we have to find out the production units which are shown below:

As we know that

Production units = Ending inventory units + sales units - beginning inventory units

= 9,000 units + 75,000 units - 12,000 units

= 72,000 units

Now the total direct material purchase for Material A and Material B is

For Material A

= 72,000 units × 3 lbs × $5 per lb

= $1,080,000

For Material B

= 72,000 units × 0.5 lbs × $18 per lb

= $648,000

Therefore, the third option is correct

A monopolistically competitive firm usually charges more than a perfectly competitive firm because:_____.a. it is part of a group of firms that has formally agreed to control the price and the output of a product.
b. its primary goal is to reap monopoly profits by replacing competition with cooperation.
c. producing homogenous output is more expensive than producing differentiated output.
d. producing differentiated output is more expensive than producing homogenous output.
e. it has a monopoly, but potential entrants exist in the form of contestable markets.

Answers

Answer:

a. it is part of a group of firms that has formally agreed to control the price and the output of a product.

Explanation:

A monopolistic competitive firm ensures that, the price of goods and the output of the products produced by them is controlled. This helps them to dictate the market in which they find themselves in.

James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 5 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $540,000. The sales price per pair of shoes is $77, while the variable cost is $29. Fixed costs of $245,000 per year are attributed to the machine. The corporate tax rate is 22 percent and the appropriate discount rate is 9 percent. What is the financial break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16)

Answers

Answer:

3,074 units sold or total revenue of $236,698 per year

Explanation:

cost of machine $540,000

depreciation expense per year = $540,000 / 5 = $108,000

contribution margin per unit sold = $77 - $29 = $48

we generally calculate the financial break even point of a business by using the following formula:

= EBIT × (1 - interest expense) × (1 - tax rate) - preferred dividends

But when we are dealing with projects, the financial break even point is the sales level at which the project's NPV = $0. If the sales level is lower, then the project will be rejected, and if the sales level is higher, then it should be accepted.

using an annuity formula, the free cash flow per year needed for the NPV = $0 is $540,000 / 3.8897 (PV annuity factor, 9%, 5 periods) = $138,828.19

$138,828.19 = {[(unit sales x $48) - $108,000] x 0.78} + $108,000

$30,828.19 = [(unit sales x $48) - $108,000] x 0.78

$39,523.32 = (unit sales x $48) - $108,000

$147,523.32 = unit sales x $48

unit sales = $147,523.32 / $48 = 3,073.40 units ≈ 3,074 units sold

Final answer:

The financial break-even point is approximately 5,104 units.

Explanation:

The financial break-even point can be calculated by determining the number of units that need to be sold in order to cover the fixed costs. First, we need to calculate the contribution margin per unit, which is the sales price per unit minus the variable cost per unit. In this case, it is $77 - $29 = $48. Next, we divide the fixed costs by the contribution margin per unit to find the break-even point in units. Using the formula: Break-even point (in units) = Fixed costs / Contribution margin per unit. Plugging in the numbers, we get: $245,000 / $48 = 5,104.17. Therefore, the financial break-even point is approximately 5,104 units.

Learn more about Financial break-even point here:

brainly.com/question/31504531

#SPJ11

15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's outstanding stock. In this acquisition transaction, how much goodwill should be recognized

Answers

Answer:

$104,000

Explanation:

Note: The full question is attached as picture below

Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities

Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000

Fair value of net assets = $460,000

Purchase consideration paid = 12,000*$47

Purchase consideration paid = $564,000

Goodwill recognized = Purchase consideration - Fair value of net assets

Goodwill recognized = $564,000 - $460,000

Goodwill recognized = $104,000

Other Questions