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aleksley [76]
3 years ago
7

The following selected amounts are available for Thomas Company.Retained earnings (beginning) $2,500Net loss 200Cash dividends d

eclared 200Stock dividends declared 200What is its ending Retained Earnings balance?a. $2,200.b. $2,300.c. $1,900.d. $2,100.
Business
1 answer:
AfilCa [17]3 years ago
4 0

Answer:

c. $1,900

Explanation:

As for the information provided, we have:

Retained Earnings opening balance = $2,500

Current year loss = $200

Balance of retained earnings after this = $2,500 - $200 = $2,300

Now, dividends are provided which shall be paid from retained earnings only.

Cash dividends are the one paid in cash.

Stock dividends are the ones which are paid by issue extra shares from retained earnings.

Thus, both are deductible from retained earnings.

Therefore, closing balance of retained earnings = $2,300 - $200 - $200 = $1,900.

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Stockholders invest $30,000 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual sa
Black_prince [1.1K]

Answer:

Explanation:

1)

Dr Cash $30,000  

Cr Common Stock  $30,000

2) No Entry  

3)

Dr Office Furniture $3,800  

Cr Accounts Payable  $3,800

6)

Dr Accounts receivables $10,800  

Cr Service Revenue (Commission) $10,800

10)

Dr Cash $140  

Cr Service Revenue (Commission)  $140

27)

Dr Accounts Payable $700  

Cr Cash  $700

30)

Dr Salary Expense $3,000  

Cr Cash  $3,000

8 0
3 years ago
Listed below are several transactions. For each transaction, indicate whether the cash effect of each transaction is reported in
Scilla [17]

Answer:

  Transaction                                          Type of Activity        Cash Inflow or

                                                                                                    Cash Outflow

1 Payment of employee salaries            Operating                  Cash outflow

2. Sale of land for cash                           Investing                    Cash Inflow

3. Purchase of rent in advance              investing                    Cash outflow

4.Collection of an account receivable   Operating                  Cash inflow

5.Issuance of common stock                  Financing                   Cash inflow

6.Purchase of inventory                          Operating                   Cash outflow

7.Collection of notes receivable             Investing                   Cash inflow

8.Payment of income taxes                    Operating                  Cash outflow

9. Sale of equipment for a note recei.    Non cash                  No effect

10. issuance of bonds                              Financing                  Cash inflow

11. Loan to another firm                           Investing                   Cash outflow

12. Payment of a long term note pay.     Financing                 Cash outflow

13. Purchase of treasury stock                Financing                 Cash outflow

14. Payment of an account payable        Operating                Cash outflow

15. Sale of equipment for cash              Investing                     Cash inflow        

Explanation:

Statement of cash flows shows the cash generated and expended by an entity during an accounting period. The statement divides the inflow and outflow of cash into three sections: operating, investing and financing activities.

Operating activities contain activities relating to cash inflow and outflow  of  entity`s primary operation during a given year. Example of this inflow and outflow are cash receipt from customers and cash payment to vendors.

Investing activities contain activities relating to entity`s investment in assets. Example includes cash received from disposal of an asset.

Financing activities contain activities relating to entity`s relationship with provider of capital like equity owner and debt holder.

Cash inflow refers incoming of cash into the business. Example includes cash received from customers. Cash outflow refers to outgoing of cash from the business.  Example includes cash paid to vendors.

3 0
3 years ago
The company town, in which a major employer builds homes and commercial buildings, and provides the goods and services needed by
yulyashka [42]

Answer:

A) True

Explanation:

Paternalistic social responsibility refers to acts whereby managers provide for the essential needs of the employees such as providing them with accommodation facilities along with satisfying other needs such as food.

Henri Ford was among the first initiators of such a responsibility when he provided health programs and recreational services to his employees.

Building town homes with provision for food by employer is an example of paternalistic social responsibility.

6 0
3 years ago
Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or ba
tensa zangetsu [6.8K]

Answer:

These costs are called overhead cost.

Explanation:

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called overhead cost. These costs can not be associated with specific product so they are allocated to product cost based on estimation.

These cost include accounting fees, advertising, depreciation expense insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities

These costs are futher divided in two categories that is variable overhead cost and fixed overhead cost.

3 0
3 years ago
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in
PIT_PIT [208]

Answer:

Here the answer is given as follows,

3 0
3 years ago
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