BUSINESS COLLEGE

Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $6 par value, 120,000 shares authorized
Preferred stock, 11 percent, par value $13 per share, 5,000 shares authorized

During the year, the following transactions took place in the order presented:

a. Sold and issued 21,900 shares of common stock at $26 cash per share.
b. Sold and issued 2,800 shares of preferred stock at $30 cash per share.
c. At the end of the year, the accounts showed net income of $41,600. No dividends were declared.

Required:
Prepare the stockholders’ equity section of the balance sheet at the end of the year.

Answers

Answer 1
Answer:

Answer and Explanation:

The preparation of  the stockholder equity section is presented below:

Tandy Company

Balance Sheet (Partial)  

Stockholders Equity :  

Contributed Capital :  

Common stock (21,900 shares ×  $6) $131,400

Preferred stock (5,000 shares × $13) $65,000

Additional Paid in Capital - Common stock (21,900 shares ×  $20)  $438,000

Additional Paid in Capital - Preferred stock (5,000 shares × $17) $85,000

Total Contributed Capital $719,400

Add: Retained Earnings $41,600

Total Stockholders Equity $761,000

Related Questions

Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products ABCD Direct materials$13.20$9.10$9.90$9.50 Direct labor 18.30 26.30 32.50 39.30 Variable manufacturing overhead 3.20 1.60 1.50 2.10 Fixed manufacturing overhead 25.40 33.70 25.50 36.10 Unit product cost$60.10$70.70$69.40$87.00 Additional data concerning these products are listed below. Products ABCD Grinding minutes per unit 2.70 3.40 3.20 2.30 Selling price per unit$75.00$92.40$86.30$103.10 Variable selling cost per unit$1.10$0.10$2.20$0.50 Monthly demand in units 2,900 2,900 1,900 2,100 The grinding machines are potentially the constraint in the production facility. A total of 52,600 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products
Elenor Company sells 400 units of inventory for $40 each. The inventory originally cost Elenor $26 each. What is Elenor’s gross profit on this transaction?
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Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $900,000 Office expense 300,000 Miscellaneous expense 15,000 Wages expense 450,000 Prepare an income statement for the year ended May 31, 20Y6. Paradise Travel Service Income Statement For the Year Ended May 31, 20Y6 $ Expenses: $ Total expenses $
Last month, Price Company purchased supplies on account, $5,000. Today, Price Company pays the amount that is owed.Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account?Check all that apply.An asset account increases. An asset account decreases.A liability account increases. A liability account decreases.Capital Stock increases. Capital Stock decreases.Retained Earnings increase. Retained Earnings decrease.

According to the video, what do Financial Analysts analyze? Check all that apply.financial records
travel distances
insurance claims
a company's competitors
fraud

Answers

A-D

-financial records

-a company’s competitors

Answer:

Financial Records

A Company’s Competitors

Explanation:

I got it right on edge 2020 hope this helps!

A. 17.2, B. 15.12 C.12% D. 18.7%What would be the weighted average cost of capital for Lam Bakery, Inc. under the following conditions:

*The capital structure is 40% debt and 60% equity

*The before-tax cost of debt (which includes flotation costs) is 20% and the firm is in the 40% tax bracket

*The firm’s beta is 1.7

*The risk-free rate is 7% and the market risk premium is 6%

Answers

Answer:

Option (B) is correct.

Explanation:

Cost of Equity (Ke) = Rf + Beta ( Rp)

where,

Rf = risk free rate

Rp = Market risk premium

Hence,

Beta systematic risk:

= 7% + 1.7 (6%)

= 7% + 10.2%

= 17.2%

Post Tax cost of debt:

=  Kd ( 1 - T)

where,

Kd = cost of debt

T = tax rate

= 20% * (1-0.4)

= 12%

WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]

where,

We = weight of equity

Wd = weight of debt

             = [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]

             = 10.32% + 4.80%

             = 15.12%

Ultra Day Spa provided $94,850 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less a 1 percent service charge. Required a. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model like the one shown next. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)

Answers

Answer and Explanation :

The presentation is shown below:

As per the data given in the question,

Assets =  Liabilities   +   Equity    Revenue -  Expenditure = Net income Cash flow

Cash + Acc. Rev.

NA      $94,850  NA       $94,850 $94,850        NA                $94,850      NA

$93,901.5 -$94,850 NA    -$948.5   NA           -$948.5          -$948.5   $93,901.5

We simply present the transactions on the financial statements

The following assets in Jack’s business were sold in 2020: Asset Holding Period Gain/(Loss) Office equipment 6 years $1,100 Automobile 8 months ($ 800) ABC stock (capital asset) 2 years $1,400 ​ Office equipment, purchased for $8,000, had a zero adjusted basis. The automobile was purchased for $2,000 and sold for $1,200. The ABC stock was purchased for $1,800 and sold for $3,200. In 2020 (the year of sale), Jack should report what amount of net capital gain and net ordinary income?

Answers

Answer:

Net capital gain = $1,400

Net ordinary income = $300

Explanation:

Long term Capital gain = $1,400 from sale of stock since it was hold for 2 years (more than 1 year)

Ordinary gain = $1,100 - $800 = $300 since automobile was 6 months old and equipment had zero basis

Plemmon Company adds materials at the beginning of the process in the forming department, which is the first of two stages of its production cycle. Information concerning the materials used in the forming department in April follows: Units MaterialsCosts Work in process at April 1 15,000 $ 8,000 Units started during April 60,000 $38,500 Units completed and transferred to next department during April 65,000 Using the average cost method, what is the materials cost of the work in process at April 30?

Answers

Answer:

$6,200

Explanation:

Beginning Work in progress     $15,000       $8,000

Units started                               $60,000      $38,500

Total process                              $75,000      $46,500

Less: Units transferred to tax    $65,000

Ending work in progress            $10,000

Average cost method material cost of work in progress = Material cost ÷ Total units

$46,500 ÷ $75,000

= $0.62

Material cost of work in progress = $0.62 × $10,000

= $6,200

Final answer:

In April, Plemmon Company started with $8000 worth of materials and used $38500 over the month. 65,000 units were completed, leaving 10,000 units still in process. The materials cost of these remaining units, calculated using the average cost method, is $6,200.

Explanation:

To find the material cost of work in process at April 30 using the average cost method, we first need to calculate the total cost of material used throughout April, which includes both the cost of materials from initial work in process and the materials started during the month. That gives us the sum of $8,000 and $38,500, amounting to $46,500 in total materials cost. Since 65,000 units were completed and transferred out during April, this means 10,000 units (75,000 units at the start and started during April - 65,000 units completed) remain in work in process at the end of April. Average cost per unit is calculated as total cost divided by total units, giving us $46,500 divided by 75,000 units, which equals $0.62 per unit. The material cost of work in process at April 30 is thus 10,000 units times $0.62, giving a result of $6,200.

Learn more about Average Cost Method here:

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Many demographers predict that the United States will have zero populationgrowth in the twenty-first century, in contrast to average population growth of about 1percent per year in the twentieth century. Use the Solow model to forecast the effect ofthis slowdown in population growth on the growth of total output and the growth ofoutput per person. Consider the effects both in the steady state and in the transition between steady states

Answers

Answer:

Check the explanation

Explanation:

  • The foremost thing is to first consider steady states. The Sluggish population growth rate swings in the line representing population growth and depreciation to the downward trend.
  • The new stable rate has a superior level of capital per worker thereby having a higher level of output per worker.
  • In Steady state, the entire output develops at rate n, whereas the output rate per worker grows at figure 0. Hence, slower population growth will hamper the figure of total output growth, but the rate of per-worker output growth will be the same.
  • Now reflect on the transition. We know that the constant-state level of output per worker is higher with little population growth. Hence, for the period of the transition to the new steady state, output per worker should grow at a rate faster than 0 for a sometime.
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