Cost and sales price

Assignment Help Accounting Basics
Reference no: EM13155588

Wilson Corp. purchased its own par value stock on January 1, 2007 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 difference between the cost and sales price should be recorded as a deduction from:

a. additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.

b. additional paid-in capital without regard as to whether or not there have been previous net "gains" from sales of the same class of stock included therein.

c. retained earnings.

d. net income.

Reference no: EM13155588

Questions Cloud

Account for treasury stock using cost method : Prepare the stockholder's equity section of the balance sheet in proper form for Vicario Corporation as of December 31, 2012. Account for treasury stock using the cost method.
Calculate the number of lead ions present in water : The EPA limit for lead in the water supply is 15 parts per billion by mass. Calculate the number of lead ions present in 1.00 kg of water that is at the EPA limit for lead.
What is the maximum amount of money this bank could create : If a single bank faces a required reserve ratio of 20%, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the MAXIMUM amount of money this bank could create (add to the money supply)?
Estimate of the standard deviation : Compute an estimate of the standard deviation of y when x = 8. Develop a 95% confidence interval for the expected value of y when x= 8.
Cost and sales price : Wilson Corp. purchased its own par value stock on January 1, 2007 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 difference between the cost and sales price should..
Determine the least squares trend equation : The following table lists the annual amounts of glass cullet produced by Kimble Glass Works, Inc. Scrap. Determine the least squares trend equation. Estimate the amount of scrap for the year 2008.
Explain halogenated compounds : Halogenated compounds are particularly easy to identify by their mass spectra because chlorine and bromine occur naturally as mixtures of two abundant isotopes
Speaker notes : Argue, given the statistical knowledge you have gained up to this point in the course, which article gives the correct answer.Incorporate appropriate animations, transitions, and graphics as well as "speaker notes" for each slide. The speaker notes m..
Amount of the minimum annual lease payment : On January 1, 2008, Dexter, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Garr Warehouse Company.  What is the amount of the minimum annual lease payment?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Implied annual interest rate inherent in credit terms

Farewell company purchased merchandise with an invoice price of $2000 and credit terms of 2/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?

  What amounts should abc company make adjusting entries

The cash balance in ABC Company's general ledger is $14,000 and the cash balance shown on its bank statement is $19,000. Reconciling items include outstanding checks totaling $8,000.

  What is the business purpose doctrine

The U.S. Tax Code has evolved over time to include many credits and deductions. Certainly, the legislative process encourages offering tax benefits for certain behavior, such as buying a new car or home, investing in manufacturing equipment, and s..

  Funded status of barrel corporations pension plan

The PBO was $400,000 at December 31, Year 6, and $420,000 at December 31, Year 7. Barrel's effective tax rate is 30%. What is funded status of Barrel Corporation's pension plan at December 31, Year 7?

  Why is the budget a far more important document

Why is the budget a far more important document in both governments and not-for-profits than in businesses?

  Separate set of books-joint venture transactions

Prepare the necessary ledger accounts assuming that a separate set of books are maintained for the joint venture transactions

  Discussing factors to consider when choosing accounting

Prepare a memo discussing the factors to consider when choosing accounting software. Be sure to discuss why each factor is important, as well as the risks of not considering each factor.

  Adjusting entry on client books

The client considers a sale to be made in the period that goods are shipped. Listed below are four items taken from the CPA's sales cutoff test worksheet. Which item does not require an adjusting entry on the client's books?

  Computing net deferred tax liability

Assuming an income tax rate of 30% for all years, the net deferred tax liability that should be reflected on Smiley's balance sheet at December 31, 2010, should be

  Maintaining the buffer stock

The cost incurred in storage is 5% of purchase price per unit and 4% are insurance charges and 2% are expenses on misc. heads related to holding the compound. Annual usage is 5000 kg. Buffer stock maintained is 200 kg and average lead time is 5 da..

  What entries would be made to record income tax expenses

Htech Corp. started its operation in 2010 and has a $550,000 net operating loss when the tax rate is 35%. In 2011, the company has $680,000 taxable income and the tax rate is revised to 40% in early 2011.

  Determining firm core operating income

The firm also reports a currency translation gain of $8.9 million as part of other comprehensive income. Calculate the firm's core operating income (after tax) and core percentage profit margin. The firm's marginal tax rate is 39 percent.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd