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Licemer1 [7]
2 years ago
9

Aaron Company has 80,000 shares of $10 par common stock outstanding. On May 25, Aaron Company declared a $1.50 cash dividend. Th

e market price of the stock on May 25 was $17 per share. The journal entry to record the cash dividend would include
a.a debit to Cash Dividends for $120,000.
b.a debit to Cash for $560,000.
c.a credit to Paid-In Capital in Excess of Par—Common Stock for $560,000.
d.All of these choices are correct.
Business
1 answer:
Finger [1]2 years ago
3 0

Answer:

a.a debit to Cash Dividends for $120,000.

Explanation:

The amount of dividend paid is dependent on two function; the number of shares and the amount declared for payment per share.

When it is paid, a credit is posted to cash account and the corresponding debit is posted to the dividend paid account.

As such, since the company has  80,000 shares and the declared dividend  was $1.50,

Total dividend paid = $1.50 × 80000

= $120,000.

Hence cash dividend is debited with $120,000 on payment.

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Brittany, who is single, cares for her father Raymond. Brittany pays the bills relating to Raymond's home. She also buys groceri
AVprozaik [17]

Answer:

Taxable Income = $29,100

Explanation:

Itemized Deductions=$3000

Standard Deduction for head of household=$8500

Personal and dependency exemptions=2*3700=$7400

Taxable income=45000-7400-8500=$29,100

5 0
3 years ago
A company has budgeted direct materials purchases of $300,000 in July and $480,000 in August. Past experience indicates that the
enyata [817]

Answer: $696,000

Explanation:

Given the following;

JULY direct material purchase = $300,000

AUGUST BUDGET

direct material purchase =$480,000

Selling and administrative expenses = $48,000

Depreciation expense = $36,000

Purchase of office equipment = $72,000

Wages expenses = $150,000

Only 70% of the amount of purchases made in a month being paid that month. The remaining 30% paid the next month

Therefore, total Budgeted cash disbursement for the month of August will include ;

30% of July purchase

0.3 × $300,000 = $90,000

70% of August direct material

0.7 × $480,000 = $336,000

Wage expense = $150,000

Office equipment purchase =$72, 000

Selling and administration expenses = $48,000

= $(90,000 + 336,000+ 150,000+72,000+ 48,000) = $696,000.

3 0
2 years ago
Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $89 per unit. The
mario62 [17]

Answer:

A.Total cost 41 93 (52)

B. It would be much better to manufacture the carrying cases .

While Fixed factory overhead is less important to this decision.

Explanation:

Fremont Computer Company Differential Analysis

Make Alternative 1: Buy Alternative 2:

Differential effect on net income

Alternative 1 : Alternative 2: Differential effect

Purchase Price - 89 (89)

Direct material 16 - 16

Direct labor 20 - 20

Variable 1 - 1

manufacture overhead (20×5%)

Fixed (5-1) 4 4 -

manufacture overhead

Total cost 41 93 (52)

The Company should choose Alternative 1

which is Make carrying case

B. It would be much better to manufacture the carrying cases.

While Fixed factory overhead is less important to this decision.

Therefore in make or buy decision the selling price of the product will be less important because the selling price was not provided which means it does not have effect on the decision of buy or make.

7 0
3 years ago
Bell Ltd. is going out of business. It needs to pay off all its liabilities before it closes for good. It wants to convert some
bija089 [108]
This is called "convertible debt", or "convertible bonds"

Convertible debt can be converted to equity, or a piece of ownership in the company. It's worth noting that Bell Ltd will need to inform any buyers of convertible debt that it plans to go out of business, since this is a major piece of information for any creditors or would-be shareholders.
3 0
3 years ago
Read 2 more answers
Suppose that in January there were 5,000,000 workers in the labor​ force, with 4,670,000 employed and 330,000 ​unemployed, imply
WINSTONCH [101]

Answer:

6.29%

Explanation:

The computation of the unemployment rate for the month of February is shown below:

Unemployment rate = Number of people unemployed ÷ Labor force

= 325,000 ÷ 5,170,000

= 6.29%

It is always shown in percentage form

Plus it is a ratio between the number of people unemployed and the labor force

Hence, all other information is not relevant. Therefore, ignored it

4 0
3 years ago
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