Answer and Explanation:
The journal entry to record the given transaction is as follows
Retained earning Dr (0.30 million × $54) $16.2 million
To Common stock (0.30 million × $1) $0.3 million
To Additional paid in capital in excess of par (0.30 million × $53) $15.9 million
(Being the stock dividend is declared)
The computation of the shares after declaring the dividend is
= 30 million × 1%
= 0.30 million
Answer:
A.The impact on the balance sheet after the payment of the dividends is a reduction in current asset-cash by $8580 as well as a drop in equity-specifically retained earnings by the same amount.
B.Total assets (book and market values) will decrease by $8580 and equity and liabilities on the other hand will also reduce by $8580.
A.The accounting entries in respect of the dividend payment will be :
Debit Retained earnings $8580
Credit Cash $8580
Explanation:
The dividends of $1.43 gives $8580 in total i.e $1.43*6000 shares
The impact of the dividend payment will be in terms of reduction in cash available for daily operations and reduction in funds attributable to shareholders.
Answer:
False
Explanation:
The case stated in question statement does not refer to focused differentiation strategy rather it is an example of Focused cost leadership strategy.
Focused cost leadership strategy is one that is competes on price margins targeting a narrow market and setting the price lower than other already existing competitors.
While, on the other end a focused differentiation strategy targets acquiring market by introducing some different product.
Answer:
$39,220
Explanation:
The maturity value of the note receivable on June 30, 2012
= Principal + Interest
= $40,000 + $40,000 x 6%
= $40,000 + $2,400
= $ 42,400
The note is discounted on September 30, 2011. Time period remaining to go till maturity as on September 30, 2011
= 12 - 3 months ( July, Aug and Sep)
= 9 months.
Amount of deduction
= $ 42,400 x 10% x 9/12
= $ 3,180
Finally, the Cash received by Ireland will be
= Maturity value - Discount
= $42,400 - $ 3,180
= $39,220