Answer:
Date - December 14, 2020
Debit : Dividend $16,000
Credit : Shareholders for dividends $16,000
Date - January 16, 2021
Debit : Shareholders for dividends $16,000
Credit : Cash $16,000
Date - December 12, 2021
Debit : Dividend $62,000
Credit : Shareholders for dividends $62,000
January 15, 2022
Debit : Shareholders for dividends $62,000
Credit : Cash $62,000
Explanation:
Dividends are initially declared before they are paid to the respective shareholders. So it is important to first record the journal at the <em>declaration date</em> of the dividend, then the <em>payment date</em> of the dividend as shown above.
Answer:
The options for this question are the following:
a. Star
b. Cash Cow
c. Question Mark
d. Dog
e. None of these
The correct answer is b. Cash Cow
.
Explanation:
The cash cow is a metaphor for a cash cow that produces milk throughout its life and requires little maintenance. A cash cow is an example of a cash cow, since after the initial capital outlay has been paid, the cow continues to produce milk for many years. These cash generators can also use their money to repurchase shares in the market or pay dividends to shareholders.
A cash cow is a company or business unit in a mature, slow-growing industry. Milk cows have a large market share and require little investment. For example, Apple (NASDAQ: AAPL) is considered a cash cow because it has established a well-defined niche in wireless gadgets. The different Apple product lines generate cash for other business lines at the beginning of their life cycle. On the contrary, a star is a company or business unit that operates in a high-growth industry. Question marks are the problematic son of the BCG shared growth matrix. They operate in high-growth markets and require capital to grow, but the probability of success is unknown. Dogs do not require much cash, but due to age, they tend to absorb large portions of capital.
Answer:
The outflow of cash in respect of rent is $270,000
Explanation:
The task is compute cash outflows on rent in the year 2018.
The prepaid rent at the end of 2017 relates to rent expense but was paid last year hence should be deducted from rent expense in the year,
On the other hand , the prepaid expense for 2018 was paid during the year hence should be added to rent expense in order to cash cash outflow relating to rent expense
Rent expense $259,000
Prepaid rent 2017 ($94,000)
prepaid rent 2018 $105,000
Cash paid in 2018 $270,000
Ultimately the outflow of cash in respect of rent in the year is $270,000
