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Aleks04 [339]
3 years ago
11

Indicate whether the following actions would increase, decrease, or not affect Indigo Inc.'s total assets, liabilities, and stoc

kholders' equity: Assets Liabilities Stockholders' Equity a. Authorizing and issuing stock certificates in a stock split b. Declaring a stock dividend c. Issuing stock certificates for the stock dividend declared in (b) d. Declaring a cash dividend e. Paying the cash dividend declared in (d)
Business
1 answer:
Elenna [48]3 years ago
7 0

Explanation:

The effects are as follows:

a. In the first option, there is No effect in any item of the financial statements

b. In the second option, there is  No effect in any item of the financial statements

c. In the third option, there is No effect in any item of the financial statements

d. No impact on the assets but it increases the liabilities side and decreases the stockholder equity

The journal entry is shown below:  

Retained earning A/c Dr  XXXXX

    To Dividend payable  A/c XXXXX

(Being cash dividend declared)  

When the dividend is declared, the dividend amount should be subtracted from the retained earning account.  

And, since the dividend is declared that increases the balance of dividend

In addition, the dividend payable and the retained earning account have a credit balance. The increase in dividend payable account would have credit balance whereas the decrease in retained earning account has a debit balance.  

e. Paying the cash dividend declared in (d)        

The journal entry is shown below:

Dividend payable A/c XXXXX

           To Cash A/c XXXXX

(Being the cash dividend is paid)

Since it reduces the liabilities and the asset side also but it does not have any impact on the stockholder equity

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Consider the following facts for health haven?
pochemuha

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attached below is the missing part of the question

$17000

Explanation:

1) calculate the cash dividends

  = beginning earnings + net income for the period - ending retained earnings

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2 ) calculate the amount of cash receipt from the sale of plant assets

first we will calculate the dep on sale of plant products

= beginning accumulated depreciation + depreciation expense - ending accumulated depreciation

= 22500 + 12000 - 24500 = $10000

next we calculate the cost of sale of plant assets

= beginning plant asset + acquisition new plant assets - ending plant asset

= $123500 + $29000 - $131500 = $21000

Hence the cash receipt from the sale plant assets = cost of sale of plant assets - dep on sale of plant products + gain on the sale of plant assets

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Shiva returns goods worth Rs.2000 and received cash Rs.8000 ?​
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Answer:

When goods were sold to Shiva :

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   To Sales A/C    Rs.10,000

(Being goods sold to Shiva)

When goods are being returned by Shiva :

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(Being goods returned by Shiva)

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