Swifty Corporation issued 100000 shares of $10 par common stock for $1250000. A year later Swifty acquired 15900 shares of its own common stock at $15 per share. Three months later Swifty sold 8500 of these shares at $19 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 8500 treasury shares, Swifty should credit

Answers

Answer 1

Answer:

the journal entries should be:

Dr Cash 1,250,000

    Cr Common stock 1,000,000

    Cr Additional paid in capital 250,000

Dr Treasury stock 238,500

    Cr Cash 238,500

Dr Cash 161,500

    Cr Common stock 85,000

    Cr Additional paid in capital 76,500


Related Questions

Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $4,400 on each September 30, beginning on September 30, 2024. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 9% properly reflects the time value of money in this situation.

Answers

Answer: $16,613

Explanation:

As the noninterest-bearing note required Lincoln to make six annual payments of $4,400, this is an annuity because it is a constant figure.

The amount that should be recorded is the present value of this amount.

Present value of annuity = Annuity * ( 1 - ( 1 + rate) ^ -no. of periods) / rate

= 4,400 * ( 1 - ( 1 + 9%)⁻⁶) / 9%

= $19,738

This present value is for September 30, 2023. It needs to be discounted further to September 30, 2021.

= 19,738 / (1 + 9%)²

= $16,613

Marge owns land and a building (held for investment) with an adjusted basis of $75,000 and a fair market value of $250,000. The property is subject to a mortgage of $400,000. Because Marge is in arrears on the mortgage payments, the creditor is willing to accept the property in return for canceling the amount of the mortgage.
a. How can the adjusted basis of the property be less than the amount of the mortgage?
b. If the creditor's offer is accepted, what are the effects on the amount realized, the adjusted basis, and the realized gain or loss for Marge?
c. Does it matter in (b) if the mortgage is recourse or nonrecourse?

Answers

Answer:

A. The amount deducted for Depreciation may be higher than the amortized amount of the mortgage principal.

Decrease in the value of the property after they granted the mortgage

Bi $400,000

ii. $75,000

iii. $325,000

C.No

Explanation:

a. The adjusted basis of the property can be tend to be lesser than the amount of the mortgage due to the fact that in the beginning of an asset life the amount that was deducted for Depreciation may be more higher than the amortized amount of the mortgage principal .

Secondly the adjusted basis of the property can be tend to be lesser than the amount of the mortgage when their is Decrease in the value of the property after they granted the mortgage .

Lastly the adjusted basis of the property can be tend to be lesser than the amount of the mortgage when the fair market value of Property are been given instead of the Adjusted basis of the property.

b. Calculation for the effects on the amount realized, the adjusted basis, and the realized gain or loss for

i. Based on the information given the amount that was realized will be the amount of $400,000

ii. Based on the information given the Adjusted basis will be the amount of $75,000

iii. Realized gain=$400,000 − $75,000

Realized gain= $325,000

c.No it don't not matter if the mortgage is recourse or nonrecourse since the amount that was realized was the amount of $400,000 and

to justify the nonrecourse mortgage is that the taxpayer has already enjoy some benefit when the mortgage was acquired due to the increase in Adjusted basis of the property.

On January 1, 2012, Sunland Company purchased for $690000, equipment having a useful life of ten years and an estimated salvage value of $40200. Sunland has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $160000. As a result of this sale, Sunland should recognize a gain of

Answers

Answer:

$54,820

Explanation:

The computation of the gain is shown below;

But before that following calculations must be done

Annual depreciation as per the straight-line method

= ($690,000 - $40,200) ÷ (10 years)

= $64,980

Now accumulated depreciation for 9 years is

= $64,980 × 9 years

= $584,820

Now the book value is

= $690,000 - $584,820

= $105,180

Now the gain is

= Sale value - book value

= $160,000 - $105,180

= $54,820

Other Questions
14 is 33 1/2% of what number? Help pleas brainliest promise Answer questions in a complete sentence 1.) Fuiste al cine? 2.) Fue Juan al supermercado?3.) Fueron ustedes a comprar los zapatos?4.)Adonde fuiste ayer?5.) Cundo fue Miguel al centro comercial? which would be a stronger acid H3PO4 or H3PO2 The cost to manufacture a hair clip is $0.50. With a markup of 200%, what is the selling price of this hair clip? Katie's business is going so well she wants to expand and add a shirt. She makes an isosceles triangle logo like the one below.What is the angle of B Seven people are going to share an 84-ounce bottle of soda. How many ounces will each person get to drink? Choose the correct equation and answer for this situation. I THINK THIS IS ABOUT RASIOS SO PLS HELP ________ was the leader of an alliance of city states opposed to Athens. What is the value of x?A. 6B. 5c. 4D.3 Analyze the map below and answer the question that follows.A satellite map of the Middle East. A country next to Iran and Turkmenistan is highlighted. A black star marks the capital Kabul.Image courtesy of NASA and the CIA World FactbookThe map above shows the countries of the Middle East. The country of Afghanistan is highlighted; what is its capital?A.BaghdadB.IstanbulC.KabulD.RiyadhPlease select the best answer from the choices providedABCD Which of the following statements is true?OA. Chemical reactions can either absorb thermal energy or release thermal energy.Chemical reactions can only absorb thermal energy.OC.Chemical reactions can neither absorb thermal energy nor release thermal energy.OD.Chemical reactions can only release thermal energy. On January 1, 2012, Sunland Company purchased for $690000, equipment having a useful life of ten years and an estimated salvage value of $40200. Sunland has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $160000. As a result of this sale, Sunland should recognize a gain of *VIOLINIST* URGENT HELPFill in bubbles with note names (letters)YOU MUST INCLUDE FLATS AND SHARP SIGNS During the early 1900s, Spokane emerged as a leader inshipping and trade.arts and culture.agriculture and industry.fishing and mining. How did President Roosevelt and President Hooverdiffer in their approaches to dealing with the GreatDepression?In two to three sentences, compare how they thoughtthe economy could be fixed during this time. Have to find x,y and z. When the Earth's continental crust and ocean crust formed, they were different densities. Why did they differ in density and how did this affect their formation?A.) The continental crust was thicker and less dense. It rose above sea level, separating land from water. B.) The continental crust was thicker and more dense. It sunk below sea level, separating land from water. C.) The continental crust was thinner and less dense. It rose above sea level, separating land from water.D.) The continental crust was thinner and more dense. It sunk below sea level, separating land from water.I think its B, but Im not completely sure. Help please! Solve the Equation P + 75 = 100. Rewrite in simplest terms: 8(-10r - 9) + 9r C. Would the number 14 be in the solution set? Tell why or why not.