Answer:
Debit : Dividends $50,000
Credit : Cash $50,000
Explanation:
Dividend calculation = 500,000 shares x $1 x 1/10 = $50,000
To record the dividend, the following entry is made :
Debit : Dividends $50,000
Credit : Cash $50,000
Answer:
A company that establishes a profit-sharing plan must make annual contributions to the plan, even if the company fails to earn a profit during the year.
Explanation:
A profit sharing plan is defined as the type of contribution plan where the plan helps in saving for the retirement of the employees while providing them the flexibility of the plan features. It is a way for the owners of the business to share the profits with the investors and also a great way to attract investment in his business.
In a profit sharing plan, the organization does not have to make or contribute any amount to the plan annually. Such a plan is best suited for the companies which experiences a fluctuating cash flow.
Businesses/producers make the goods and services that exist in the economy. Producers create goods or services that are available for consumers to purchase so that they are making a profit. Consumers need to be interested in the goods or services available so that the companies stay in business and help drive the economy.
<span>The
targeted information presented on blogs, such as Daily Kos and Power Line, is
an example of narrowcasting. Its objective is to deliver custom-tailored ads
based on demographic, psychographic and past buying patterns to potential
recipients who are predisposed to it. It is also an act of spreading an
advertising message or signal over a small geographical area or to a selected group
of audience. Narrowcasting done through direct mail, cable television, seminars,
specialized trade publications, and keyword-associated web advertising.</span>
Explanation:
The adjusting entry is as follows
Accrued interest expense Dr $124
To Interest payable $124
(Being the accrued interest expense is recorded)
The computation is shown below:
= Borrowed amount × interest rate × given months ÷ total number of months in a year
= $6,200 × 12% × 2 months ÷ 12 months
= $124
