Reference no: EM132796126
Problem 1: In 2020, NCT Company issued 5,000 shares of $10 par value ordinary share for $100 per share. In 2021, NCT reacquired 2,000 of its shares at 150 per share from the estate of one of its deceased officers and immediately retired these 2,000. NCT uses cost method in accounting for its treasury share transactions. In connection with the retirement of these 2,000 shares, NCT should debit
Option a. Share Premium:100,000 ; Retained Earnings: 180,000
Option b. Share Premium:180,000 ; Retained Earnings: 100,000
Option c. Share Premium:280,000 ; Retained Earnings: Zero
Option d. Share Premium: 20,000 ; Retained Earnings: 280,000
|
What is the total shareholders equity at year-end
: What is the total Shareholders' Equity at year-end? At the beginning of current year, NCT Company was organized and authorized to issue 100,00 shares
|
|
What is the net book value of the machine
: At the end of the five years, what is the net book value of the machine? Calculate the depreciation expense for 2020 using the straight-line method
|
|
What should Iso Company report as total shareholders equity
: What should Iso Company report as total shareholders equity? Retained earnings - Appropriated for bond retirement 500,000. Treasury shares 100,000
|
|
Discuss cost concepts used in manufacturing accounting
: Discuss cost concepts used in manufacturing accounting. Be sure to address the basic product cost components - ie., what are they?
|
|
What NCT should debit
: NCT uses cost method in accounting for its treasury share transactions. In connection with the retirement of these 2,000 shares, NCT should debit
|
|
Find the effective rate of interest per month
: Given the nominal annual rate of interest compounded semiannually is 8%, find the effective rate of interest per month
|
|
Prepare the journal entry required at declaration
: The common shares have a fair value of $450 per share on December 31, 2020, the date of declaration. Prepare the journal entry required at declaration.
|
|
What is the return on sales for the division
: The following are selected data for the division for the consumer products of ABC Corp for 2019: What is the return on sales for the division
|
|
What the journal entry would include a credit to
: NCT Corporation issued 1,000 ordinary shares, The ordinary share has 100 par value per share. In recording the sale, the journal entry would include a credit to
|