Answer:
Date Description DR CR
June 15 Dividend expenses $120,000
Dividend Payable 120,000
July 10 Dividend Payable 120,000
Cash 120,000
Dec 15 Dividend Expenses 146, 400
Dividend payable 146,400
Explanation:
when dividend is declared and cash is yet to be paid, dividend expenses account will debited while dividend payable account will be credited.
when cash is paid for the dividend, dividend payable account will be credited while the cash account will be credited.
As at June 30, total number of shares outstanding = 95,000 + 25,000 = 120,000
As at December 31, the total number of outstanding shares = 95,000 + 25,000 + 2,000 = 122,000
The change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to increase and the level of investment spending to decrease. If the interest increase, it follows that the spending would decrease.
Answer:
In this situation:
c. Discount must compensate Contractors for its lost profit.
Explanation:
- The option A is not correct in our situation as there is not agreement of local zoning authority with either the contractors or Discount Retail, Inc. so they are not breaching any contract.
- The option b is not correct as contract is not discharged that mean the contract is not ended.
- The option c is correct as now Discount Retail Inc. must compensate the contractor for its profit loss as they will not be building the store and they will have experienced a loss.
- Contractors are in breach of contract as the zoning authority has changed the law not to build the store at that location but not the contractors.
