The effect of the declaration of a cash dividend on a company's financial statements is to decrease both stockholders' equity and total assets.
<h3>What are cash dividends?</h3>
Dividends are cash payments made to the stockholders of a public company. Stockholders are individuals who purchase shares in a public company.
Dividends are paid with cash, thus, the assets of a company would decline. Since assets is positively related to stockholders equity, stock holder's equity would also decline.
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Answer:
Feb. 2021
Dr Gift Card Liability $20
Cr Gift Card Revenue $20
(to record revenue arisen from oustanding Gift Card Liability)
Explanation:
Under GAAP, the accounting for Gift Card is quite simple. When the gift card are sold, Gift Card Issuer receives Cash (Debit Cash) and assume the Liability (Cr Liability) to anyone owning the gift card for later providing of goods/services priced at the Cash amount that had been received.
It is not until Gift Card is redeemed that Gift Card Issuer is allowed to record revenue (Credit Revenue) as it is an actual point of time when the provide of goods/services takes place. Also at the same time, once the goods/services are provided, they Liability assumed earlier in time through Gift Card issuance will be discharged to the extent of the price of goods/services provided.
Answer:Debit , market, stated.
Explanation: An actual payment of interest from a payables account is always entered as a debit in that account ledger. Then when calculating the effective interest : it is the the difference between the cash payment based on the market interest rate and interest expense based on the stated interest rate.
Answer:
D) $500 loss
Explanation:
The computation of the realized value on the investment is shown below:
= Number of shares × premium
= 100 shares × $5
= $500 loss
Since the call is for 125 shares for $125 and the selling price per share is $123 due to which the contract is not implemented. So the premium amount would be recorded as a loss of $500
Answer:
the extent to which a product is recognized and bought by customers in a particular market.
