Equity section of the balance sheet

Assignment Help Accounting Basics
Reference no: EM1356501

The Cosmo Company was started by issuing 800 shares of $10 par value stock at an average market price of $20 per share. The company repurchased 100 shares at a market price of $15 per share. The company later sold 50 shares at a market price of $25 per share. At the end of the first year of operations the company has $2,600 of retained earnings in addition to its contributed capital.

a. Prepare journal entries to record the treasury stock transactions.

b. Prepare the equity section of the balance sheet for Cosmo Company.

Reference no: EM1356501

Questions Cloud

Explain about how device works : Write down what first comes to mind as to what is good and bad about the way the device works. The range of tasks a typical user would want to do using it.
Compute the realized return on investment : Suppose you purchse a very risky bond that promises a 9.5% coupon and return of the $1,000 principal in 10 years. You pay only $500 for the bond.
Illustrate why is it important for average person : Illustrate why is it important for average person to understand the basic mechanisms of supply and damand in the market economy.
Find the magnetic force on the bolt : An iron bolt of mass 60.0 g hangs from a string 33.1 cm long. The top end of string is fixed. Without touching it, a magnet attracts the bolt so that it remains stationary, displaced horizontally 27.0 cm to the right from the previously vertical l..
Equity section of the balance sheet : Prepare journal entries to record the treasury stock transactions. Prepare the equity section of the balance sheet for Cosmo Company.
Explain and identify the kind of societal expectation : Explain and Identify the kind of societal expectation of behavior and what standard of behavior is most appropriate?
Managing innovation within organizations : There is general agreement among researchers that teams are essential for innovation. Yet, companies often complain that teams do not seem to work well. Do you agree with the researchers or the companies? Explain your position.
Select beneficial option for client : Company A currently purchase CDs from many Vendors at various rates per pack. They do not have guaranteed orders with any vendors, and are planning to make consolidated order and reduce overall price.
Journal entries for work in process : Quark Spy Equipment manufactures espionage equipment. Quark uses a job-order cost system and applies overhead to jobs the basis of direct labor-hours. Prepare journal entries to record Quark's transaction for the month of January. Do not close out..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Balance sheet exposure

What is" balance sheet exposure". When converting a balance sheet from one currency to another currency what rate do we use? Are all balance sheet accounts adjusted as of the balance sheet date?

  Derivative securities analysis

You're considering the S&P 500 futures contract. On the 1st November 2010, the S&P was trading at 1127,17 when futures contracts maturing on 1st March 2011 were priced at 1119,70. The annualised interest rate is 1,25% and the annualised dividend y..

  Implementing the change to equity method

Gerken Company concluded at the beginning of 2013 that the company's ownership interest in DillCo had increased to the point that it became appropriate to begin using the equity method to account for the investment.

  Estimating the contract cost

During the year, job 123 a firm fixed price contract for the production of 3,000 raincoats will be started and completed. Estimate the contract cost.

  Important risks for audit of acquisition

What are the most important risks for the audit of the acquisition and payment cycles in the automotive industry?

  Evaluate earnings per share

Evaluate earnings per share

  Determine foreign exchange transaction

Post Inc, had a receivable from a foregn customer that is payable in customer's loca currency. On Dec 31, 2009, Post correctly included this receivable for 200,000 local currency units

  Schedule of taxable income and journal entries

Prepare a schedule starting with pretax financial income and compute taxable income. Prepare the journal entry to record income taxes for 2011.

  Use the straight line method

Question:  San Jose Company issued 5-year $200,000 face value bonds at 105 on January 1, 2012. The stated interest rate on these bonds is 9%. Use the straight line method to complete the amortization schedule given.

  Derivative instruments and investment classification

Write down the differences between traditional and derivative instruments. Why do companies use derivative instruments? Are derivatives a good investment?

  Determining short sale

Assume you're bearish on Stock Y and decide to sell short 100 shares at the current market price of $30 per share. You earn no interest on the funds in your margin account and the cost of borrowing shares is 0.25%.

  Meaning of a favorable variance and an unfavorable variance

Prepare a memorandum - Does Cost of Goods Sold decrease or increase when concluding a favorable variance? Does gross margin increase or decrease when a favorable variance is closed to Cost of Goods Sold? Describe.

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