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3 years ago

Why does a stock dividend require a formal journal entry in the financial accounting records when a stock split does not?

1 answer:

4 0

<span>A stock split will not change the general ledger account balances and ... equity remains the same, astock dividend requires a journal entry to transfer an amount ...</span><span>
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Amber McClain. Amber McClain, the currency speculator we met in the chapter, sells eight June futures contracts for 500,000 peso

AnnyKZ [126]

Question Completion:

Note that the June Settlement Futures rate = $0.10773/Ps from the Exhibit 7.1 (not provided here).

Answer:

Amber McClain

a) If spot rate = $0.12000/Ps:

The value of her position at maturity = -$49,000

b) If spot rate = $0.09800/Ps:

The value of her position at maturity = -$88,000

c) If spot rate = $0.11000/Ps:

The value of her position at maturity = -$40,000

Explanation:

a) Data and Calculations:

Notional selling price of June futures = 500,000 pesos

Number of contracts = 8

June Settlement Futures rate = $0.10773/Ps

a) If spot rate = $0.12000/Ps:

The value of her position at maturity = -Notional selling price * (Spot rate - Futures rate) * 8

= -500,000 * ($0.12000/Ps - $0.10773/Ps) * 8

= -500,000 * 0.01227 * 8

= -$49,000

b) If spot rate = $0.09800/Ps:

The value of her position at maturity = -Notional selling price * (Spot rate - Futures rate) * 8

= -500,000 * ($0.12000/Ps - $0.09800/Ps) * 8

= -500,000 * 0.022 * 8

= -$88,000

c) If spot rate = $0.11000/Ps:

The value of her position at maturity = -Notional selling price * (Spot rate - Futures rate) * 8

= -500,000 * ($0.12000/Ps - $0.11000/Ps) * 8

= -500,000 * 0.01 * 8

= -$40,000

6 0

2 years ago

You are working alone and your shift is due to be over at 6 p.m. The individual who is scheduled to begin working at 6 p.m. does

Stells [14]

Answer:

You should call your manager or supervisor. It is not your responsibility to cover for someone else. You could also call in someone else in the position to see if they wanted to come in. explain the situation, you ask to be relieved or get paid double time for overtime, if that is not an option close up shop, and make sure everything is secure and locked up properly, then go home. You have done everything you are supposed to do, now the responsibility rests with your boss.

7 0

2 years ago

Read 2 more answers

A company uses proprietary computer software to offer services that other companies have not been able to emulate. These service

matrenka [14]

Answer:

C. Distinctive competence

Explanation:

Distinctive competence -

It refers to the complete skill and practice , which enables to give rise to a very tough competition to the rest of the organisations , and thereby makes the particular organisation to stand out from crowd , is referred to as the distinctive competence .

The distinctive competence of a particular company or firm act as a weapon or a protective agent during their tough time .

Hence , from the given scenario of the question ,

The correct answer is C. Distinctive competence .

8 0

3 years ago

A restaurant bill is made up of the following: $12.50 for starters, $28.55 for main courses, and $8.95 for deserts, plus a 15% s

Alina [70]

Answer:

The bill is $57.5

Explanation:

The computation of bill is shown below:

= Price for starters + price for main course + price for deserts + service charge tax

= $12.50 + $28.55 + $8.95 + $7.5

= $57.50

The service charge would be calculated by considering all food costing.

In mathematically

= Service tax rate × ( Price for starters + price for main course + price for deserts)

= 15% × ($12.50 + $28.55 + $8.95)

= 15% × $50

=$7.5

Hence, the bill is $57.5

7 0

2 years ago

Bernie is a participant in his employer's non-contributory ESOP. Two years ago, his employer contributed stock with a fair marke

vampirchik [111]

Answer:

taxable amount = $10,000

Explanation:

given data

2 year ago fair market value = $30,000

fair market value = $40,000

sold the stock = $50,000

solution

we get here taxable amount when ESOP sold

so taxable amount = Selling price - fair market value on distribution date ...........1

put here value

taxable amount = $50000 - $40000

taxable amount = $10,000 long term capital gain

3 0

2 years ago