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stepladder [879]
3 years ago
6

When previously declared cash dividends on common stock are paid which account would the corporation debit?

Business
1 answer:
garri49 [273]3 years ago
4 0

Answer:

C.

Explanation:

Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.

The journal entry on declaration of dividend would lead to a debit to retained earnings and credit to dividends payable.

No journal entry is passed on the date of recording dividend.

Later, on the date of payment of dividend would lead to a debit to dividends payable and credit to cash account.

The journal entries have been shown below:

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Feliz [49]

The real value of your savings if the price level increases by 6 percent for the year will be $5,660.

If the price level increases by 6%, then the year-end price level index would be 106.

Real value of savings = 6,000 * (100 / 106) = $5,660

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1 year ago
Splish Brothers Inc. accepted a national credit card for a $11200 purchase. The cost of the goods sold is $7200. The credit card
Ivahew [28]

Answer:

Net operating income will increase by $3664.

Explanation:

Credit card sales = $11.200

Card fees = 3% * $11.200 = $336

Cost of goods sold = $7.200

Net operating income = Sales - Cost of goods sold - card fees

Net operating income = $11.200 - $7.200 - $336 = $3664.

So, net operating income will increase by $3664.

8 0
3 years ago
Fetzer Company declared a $0.35 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8
sp2606 [1]

Answer:

The journal entry to record the dividend declaration would be as follows:

                                    Debit        Credit

retained earnings      $63,700

common dividend payable           $63,700

Explanation:

According to the given data we have the following:

shares issued=190,000

treasury stock=8,000

cash dividend=$0.35

Therefore, to prepare the journal entry to record the dividend declaration we would have to calculate the retained earnings as follows:

retained earnings=(shares issued-treasury stock)*cash dividend per share

retained earnings=(190,000-8,000)*$0.35

retained earnings=$63,700

Hence, The journal entry to record the dividend declaration would be as follows:

                                    Debit        Credit

retained earnings      $63,700

common dividend payable           $63,700

4 0
3 years ago
Clarence is visiting his friends in Germany. Which currency will he use to pay for souvenirs?
dolphi86 [110]
If Clarence is visiting his friends in Germany, he will use euros to pay any souvenirs he buys. Other places that uses euros are Greece, Austria, Finland, and Spain. 
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An FI purchases at par value a $100,000 Treasury bond paying 10 percent interest with a 7.5 year duration. If interest rates ris
puteri [66]

Answer:

The bond's new value is $70,000

Explanation:

First calculate the percentage change in the value of the bond

Duration = Percentage change in price / Percentage change in yield

Percentage change in price = Duration x Percentage change in yield

where

Duration = 7.5 years

Percentage change in yield = 4%

Percentage change in price = ?

Placing value sin the formula

Percentage change in price = 7.5 x 4%

Percentage change in price = 0.30

Percentage change in price = 30%

As we know that the value of the bond and the yield rate are inversely proportional to each other, If the yield rate increases the value of the bond decreases due to the discounting factor used in the valuation o the bond.

Hence, the value of the bond is calculated as follow

Value of the bond = Par value of the bond x ( 1 - per centage of change in the price of the bond

Value of the bond = $100,000 x ( 1 - 30% )

Value of the bond = $100,000 x 0.70

Value of the bond = $70,000

3 0
3 years ago
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