[Solved] DownRiverExpresshas5,000sharesofstockouts

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

DownRiverExpresshas5,000sharesofstockoutstandingwithaparvalueof$1.00per share.Thecurrentmarketvalueofthefirmis$390,000.Thebalancesheetshowsapaidin surplusaccountvalueof$122,000andretainedearningsof$216,000.Thecompanyjust announceda2-for-1stocksplit.Whatwillthepaidinsurplusaccountbalancebeafterthe split? A.$61,000 B.$112,000 C. $122,000 D.$183,000 E.$244,000 Please elaborate

DownRiverExpresshas5,000sharesofstockoutstandingwithaparvalueof$1.00per

share.Thecurrentmarketvalueofthefirmis$390,000.Thebalancesheetshowsapaidin

surplusaccountvalueof$122,000andretainedearningsof$216,000.Thecompanyjust

announceda2-for-1stocksplit.Whatwillthepaidinsurplusaccountbalancebeafterthe

split?

A.$61,000

B.$112,000

C.$122,000

D.$183,000

E.$244,000

Please elaborate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Cynthia D Heagy, Constance M Lehmann

7th Edition

ISBN: 1111219516, 978-1111219512

More Books

Students also viewed these Accounting questions

Question

★★★★★

Zippy, a regional convenience store chain, maintains milk inventory by the gallon. The first months milk purchases and sales at its Columbus, Ohio, location follow: Nov. 2 Purchased 11 gallons @...

Answered: 1 week ago

Question

★★★★★

Define SQM.

Answered: 1 week ago

Question

★★★★★

The number of characters in a page that are misprinted has the Poisson distribution with parameter

Answered: 1 week ago

Question

★★★★★

Puckett Co. has office furniture that cost $75,000 and that has been depreciated $50,000. Record the disposal under the following assumptions. (a) It was scrapped as having no value. (b) It was sold...

Answered: 1 week ago

Question

★★★★★

Identify the item below that is NOT a pointing or control task: Position - Choosing a point in a one - , two - , three - , or higher - dimensional space Quantify - Specify a numeric value Consider -...

Answered: 1 week ago

Question

★★★★★

The Network layer handles all the following except File sharing, message handling, and database access logical addressing translating logical network addresses ( IP addresses ) into physical...

Answered: 1 week ago

Question

★★★★★

2. The table below provides you with the 'Inventory turnover ratio' and 'receivable turnover ratio' of two auto-parts manufacturing firms (Firm A and Firm B). Also provided is the average values of...

Answered: 1 week ago

Question

★★★★★

Grandfield College. The law requires that any business, including a school, track its software. It is important to know what software the school owns, in what versions, and what the license agreement...

Answered: 1 week ago

Question

★★★★★

Does States and local governments, including local health care facilities, receive sufficient funding to adequately plan and prepare for a Weapon of Mass Destruction incident?

Answered: 1 week ago

Question

★★★★★

Before you start modeling: What are two questions you would ask to ensure the modeling process starts on task? What is your purpose for asking each of them?

Answered: 1 week ago

Question

★★★★★

Local Private Government Sector Federal Government State, Tribal, Territorial, and Insular Area Communities Nongovernmental Organizations Government Individuals, Families, and Households Whole...

Answered: 1 week ago

Question

★★★★★

10. Imagine that the goal has been reached. Now think about the path you have to take to reach the goal. How did you influence other people to achieve your goal? Imagine walking along the path you...

Answered: 1 week ago

Question

★★★★★

2. How do I perform this role?

Answered: 1 week ago

Question

★★★★★

6. List one and only one societal role that you wish you had performed better in. Spend the next month on a small push to improve your personal performance within this role. At the end of the month,...

Answered: 1 week ago

Previous Question Next Question