Answer:
<u>December 31, 2018</u>
Debit : Dividend $40,000
Credit : Shareholders for dividends $40,000
Explanation:
When dividends are declared, we Debit an Equity Element - Dividend and Credit the Liability - Shareholders for dividends.
Calculation of this dividend is made on the stockholders in existence at the on a stated date (January 15 in this case) and at par value ($2) as follows :
Dividend = 100,000 x $2.00 x $0.20 = $40,000
Answer:
TR decreases if Demand is Elastic, TR increases if Demand is Inelastic
Explanation:
Price Elasticity of Demand is the responsive change in price, due to change in price. Elastic demand means demand responds more to price change, Inelastic demand means demand responds less to price change. Total Revenue is the total receipt value from sales = Price x Quantity
- If demand is elastic : price & total revenue are inversely related - price increase, demand decrease & price decrease, demand increase.
- If demand is inelastic : price & total revenue are directly related - price increase, demand increase & price decrease, demand increase
So, If a company increases its sale price per unit of a product :
- Total Revenue would increase as a result of price rise, if demand is Inelastic
- Total Revenue would decrease as a result of price rise, if demand is Elastic
Milka's balance sheet reports: Interest payable for one month.
<h3>What is interest?</h3>
The fee you pay to borrow money or the fee you charge to lend money is called interest.
Some features of interest are-
- The fee paid for the privilege of borrowing money is called interest, and it is often stated as an annual percentage rate (APR).
- The compensation a lender or financial organization receives for giving out money is called interest.
- The most common way to represent interest is as a yearly percentage of the loan amount.
- The interest rate on the loan is known as this percentage.
- For instance, if you put money in a savings account, a bank will provide you interest.
The three types of interest include -
- simple (regular) interest: The daily interest rate, the principle, and the number of days between payments are multiplied to determine simple interest.
- accrued interest: The amount of interest accrued on a loan or other financial obligation as of a certain date that has not yet been paid back.
- compounding interest: The interest you earn on interest is known as compound interest. Simple math may be used to demonstrate this: If you have $100 and it generates 5% interest annually, you will have $105 at the end of the first year. You'll have $110.25 after the second year is over.
To know more about the estimation of simple interest, here
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Answer:
a.reduced MI and increases M2
Explanation:
Hope that help you!!
