Answer:
Option D is correct,$1,950,000
Explanation:
In order to compute the closing balance of retained earnings, the preferred shares dividends for prior and current years as well as the common stock dividend must be deducted from net income before adding the remnant to the opening retained earnings:
Net income $870,000
Preferred dividend prior year($100*20000*8%) ($160,000)
Preferred dividend current year($100*20000*8%) ($160,000)
Common stock dividend($2*100,000) ($200,000)
net income after dividends $350,000
Closing retained earnings=$1600,000+$350,000
=$1,950,000
Answer:
a. 8.65 times
b. 42 days
Explanation:
The computation of Receivables turnover ratio and days to collect is shown below:-
a. Receivables turnover ratio = Net sales ÷ Average receivables
= $43,500 ÷ ($5,180 + $4,880) ÷ 2
= $43,500 ÷ ($10,060 ÷ 2)
= $43,500 ÷ $5,030
= 8.65 times
b. Days to collect = 365 ÷ Receivables turnover ratio
= 365 ÷ 8.65 times
= 42 days
Answer:
(a) Common shares outstanding after stock split:
= 1,000,000
(b) New par value per share = 0.01 × 20
= 0.2
(c) Since, there will be no change in the paid up capital after the reverse stock split. So, there is no need to record journal entry, as it will be accounted as the memorandum.
Answer:
Office Supplies T-account
<u>Debit :</u>
Beginning Balance $600
Purchases $2,300
Totals $2,900
<u>Credit:</u>
Ending Balance $500
Used (<em>Balancing Figure</em>) $2,400
Totals $2,900
Adjusting Entry
Supplies Expenses $2,400 (debit)
Office Supplies $2,400 (credit)
Posting Entries.
1. Supplies Expense = $2,400 (Debit Balance)
2.Office Supplies = $500 (Debit Balance)
Explanation:
As the supplies are used during the period, recognize an expense : Supplies Expense and de-recognize the Office Supplies Asset account to the extend of the amount of inventory used during the period.
In other words we are taking out an expense (Increasing it) and decreasing an asset : Office Supplies.
Answer:
The cost of the land should be recorded as $108,350
Explanation:
Land cost = $112,000
Demolition dilapidated building = $2,200
Legal fees - title search = $1,450
Cost of land = Land cost - Demolition dilapidated building - Legal fees - title search
Cost of land = $112,000 - $2,200 - $1,450
Cost of land = $108,350
