Answer:
D. Preferred stockholders are allocated their dividends before dividends are allocated to common shareholders.
Explanation:
Before declaring dividend on common shares, it is always necessary for the company to pay dividends on preferred shares and dividends are declared when there are sufficient profits.
Answer:
b. $ 50,000
Explanation:
Investment cost
720000
Book value of net asset
100000
420000
--------------
520000
Excess
200000
Allocated as follows
Land and equipment 50000
overvaluation of bonds payable 40000
Undervaluation of inventory 60000
Total 150000
Un allocated amount
Goodwill 50000
Total 200000
The answer to the question is because the effort to visit the legislators are too great.
Unfortunately, even though the audience members support your perspective, often times, people are reluctant to follow through on the actions needed to make the change. This is a common issue found in various parts of society – from your work life to your personal relationships.
Answer:
2nd January
Dr Machinery $178,000
Cr Cash $178,000
( to record the purchase of used machine)
3rd January
Dr Machinery $4,000
Cr Cash $4,000
(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).
Explanation:
- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.
- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.
Answer:
Dividends = 6,000
Explanation:
Ending liabilities = Beginning liabilities - Decrease in liabilities
= $6,900 - $1,200
= $5,700
Ending net assets = Ending total assets - Ending total liability
$3,900 = Ending total assets - $5,700
Ending total assets = $3,900 + $5,700
= $9,600
Ending RE = Ending total assets - Ending liabilities
= $9,600 - $5,700
= $3,900
Dividend = Beginning RE + Net income - Ending RE
= $6,900 + $3,000 - $3,900
= $6,000
