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olganol [36]
3 years ago
15

ABC Corporation was organized on Jan 1, 2020. The firm was authorized to issue 100,000 shares of $1 par common stock. During 202

0, ABC Corporation has the following transactions relating to shareholder’s equity:a.Issued 10,000 shares of common stock at $3 per share. b. The board of directors declared dividends of $30,000c.Paid dividends to common shareholders of $30,000. d. Purchased 500 shares of treasury stock at $12 per share
Business
1 answer:
zhannawk [14.2K]3 years ago
3 0

Answer:

The journal entries are required with corresponding effect on retained earnings;

Explanation:

a. Cash  10,000*3    Dr.$30,000

   Common Stocks 10,000*1   Cr.$10,000

  Paid in Capital-Common Stocks 10,000*(3-1) Cr.$20,000

b. Dividend Expense   Dr.$30,000

    Dividend Payable    Cr.$30,000

c. Dividend Payable  Dr.$30,000

   Cash                       Cr.$30,000

d. Treasury stock    500*12 Dr.$6,000

    Cash                                 Cr.$6,000

The retained earnings  will reduce by the dividend amount of $30,000 declared and paid.

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An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined federal and state tax bracke
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Answer:

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Explanation:

The after-tax yield of any financial instrument such as a bond or even stock dividends is the effective yield after the applicable taxes have been paid. Higher the tax rate, lesser is the after-tax yield for the investor.

To calculate your after-tax yield, you need to know both the rate of return on your investment and the tax rate that applies to those profits. First, convert your tax rate that applies to the earnings to a decimal by dividing by 100. Second, subtract the result from 1 to calculate the portion of your earnings that you get to keep after you pay taxes on them. Third, multiply the result by the rate of return on the investment to calculate your after-tax yield.

For example, say that you want to calculate the after-tax rate of return on your certificate of deposit. If your rate of return is 3 percent and the tax rate applied to that interest is 24 percent, start by dividing 24 percent by 100 to get 0.24. Second, subtract 0.24 from 1 to get 0.76 – the portion that you get to keep after accounting for taxes. Finally, multiply 0.76 by your overall rate of return of 3 percent to find your after-tax yield is 2.28 percent.

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With increase the retailers expect to earn more, and with decrease the retailers expect to earn less.

This is a normal market condition and scenario, this does not link to any kind of political or legal environment, although the change in price might be due to political or legal policies, but the increase or decrease in productivity, is not related to any political or legal influence.

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