Gangadhar Co. went for buy back of 1000 share @100 at a premium of 20%. For thebuyback it decided to utilize security premium account which has an existing balance of200000. Buyback expenses stood at 5700. Pass the journal entry.

Common stock means the amount raised against which the dividend is paid but after paying interest on…

Answered: Gangadhar Co. went for buy back of 1000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare the journal entries for both 2016 and 2017. Byrd company bought computers for 60k. Terms of the sale were 2/10, n30. Byrd signed a 60000, 30 day note at 12% in order to take advantage of the discount terms. This transaction took place on dec 29 2016. Acct payable pd jan 2 2017. On dec 20 2016 byrd declared a 2.00 cash dividend. 10 thousand shares were outstanding on this date. Dividend is to b paid jan 5 2017
The company have Opening stock 400 units @BD 25 and need to issue the material of 300 at what price the paerial will be issued under FIFO.
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Sun Minerals, Inc., is considering issuing additional long-term debt to finance an expansion. Currently, the company has $50 million in 12 percent debt outstanding. Its after-tax net income is $12 million, and the company is in the 40 percent tax bracket. The company is required by the debt holders to maintain its times interest earned ratio at 3.7 or greater. Do not round intermediate calculations. a. What is the present coverage (times interest earned) ratio? Round your answer to one decimal place. times b. How much additional 12 percent debt can the company issue now and maintain its times interest earned ratio at 3.7? (Assume for this calculation that earnings before interest and taxes remain at their present level.) Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. $ million c. If the interest rate on additional debt is 14 percent, how much unused "debt capacity" does the company…
3. Vance Refrigeration repurchased 1,000 shares of their own common stock for $20 per share. They then resell 500 shares for $30 per share. How much should APIC be debited or credited for the resale? a. Credit for $10,000 b. Credit for 5,000 c. Debit for 5,000 d. APIC will not be affected by the resale.
Please make sure the answer is clear n easy to read. Please do it on white paper. Again make sure the answer is clear. do it on white paper. please show all work and do it in a white paper

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Gangadhar Co. went for buy back of 1000 share @100 at a premium of 20%. For the buyback it decided to utilize security premium account which has an existing balance of 200000. Buyback expenses stood at 5700. Pass the journal entry.