Posted: May 4th, 2016
Bob’s Backpacks manufactures school backpacks adorned with movie-theme logos. During the first quarter of the year, the company had the following costs:
Direct materials used $51,500
Direct labor 39,000
Factory rent 73,500
Factory equipment depreciation 13,500
Office equipment depreciation 1,100
Marketing expenses 5,800
Administrative expenses 15,500
The company had no beginning or ending work in process inventory and no beginning finished-goods inventory. Although 7,600 units were started and finished during the quarter, just 4,900 were sold, for an average price of $32 each.
Required:
Calculate Bob’s Backpacks’ operating income for the first quarter. If required, round your interim calculations to the nearest whole number.
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.
Place an order in 3 easy steps. Takes less than 5 mins.