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nata0808 [166]
3 years ago
11

Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,200 shares of GE common stock that Adams

had purchased in February for $39,600 as an investment. GE’s shares had a market value of $31 per share on the declaration date.
Prepare the journal entries to record the property dividend on the declaration and payment dates.

1. Record adjustment of stock to fair value

2. Record the journal entry on the declaration date

3. Record the journal entry on the payment date
Business
1 answer:
KATRIN_1 [288]3 years ago
4 0

Answer:

Explanation:

The journal entries are shown below:

1. Loss on Investment A/c Dr $1,800        (1,200 shares × $31 - $39,600)

            To GE shares investment A/c $1,800

(Being the adjustment is recorded)

2. Retained earnings A/c Dr $37,200         (1,200 shares × $31)

           To Property Dividends Payable $37,200

(Being the entry is made on declaration date)

3. Property Dividends Payable A/c $37,200

             To GE shares investment A/c $37,200

(Being the entry is made on payment date)

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3 years ago
fficiency wages, minimum-wage laws, and unions all keep wages a. below the equilibrium level, causing a shortage of labor. b. be
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8 0
2 years ago
Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be
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Answer:

The correct answer is C.

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Giving the following information:

Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later?

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3 0
3 years ago
A $1,000 par value bond with a conversion price of $50 has a conversion ratio of
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Answer:

Conversion ratio will be 20 shares

Explanation:

We have given bond value = $1000 per bond

Conversion price = $50

We have to find the conversion ratio

Conversion ratio is the ratio of bond value per bond to the conversion price

So conversion ratio will be equal to =\frac{bond\ value\ per\ bond}{conversion\ price}=\frac{1000}{50}=20\ shares

So conversion ratio will be 20 shares

So option (D) will be correct answer

3 0
3 years ago
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