BUSINESS LAW

A corporation has issued 30,000 shares of $50 par common stock and holds 5,000 of these shares as treasury stock. If the corpora

Andrews [41]

Answer:

The amount of $25,000 will be recorded as the Cash Dividends

Explanation:

The amount which is to be recorded as the cash dividend is computed as:

Cash Dividend = Number of Shares × Rate per share

where

Number of shares is computed as:

Number of shares = Issued Shares - Treasury Stock

= 30,000 - 5,000

= 25,000

NOTE: No dividend is paid on treasury stocks, so the the shares of the treasury stocks are subtracted.

Rate per share is $1

SO, Putting the values above:

Cash Dividend = 25,000 × $1

= $25,000

3 0

3 years ago

On October 1, Company B records 1 year of prepaid rent in an income statement account then adjusts for the unexpired prepaid ren

trasher [3.6K]

Answer:

The first journal entry was not the most appropriate, but since the mistake was correctly adjusted at the end of the year, both assets and expenses will be the same whether they did it correctly the first time or they had to adjust a mistake at the end of the year.

E.g. something like this happened

October 1, rent expense for 1 year

Dr Rent expense 12,000

Cr Cash 12,000

December 31, adjustment to rent expense

Dr Prepaid rent 10,000

Cr Rent expense 10,000

they should have recorded it as:

October 1, prepaid rent for 1 year

Dr Prepaid rent 12,000

Cr Cash 12,000

December 31, adjustment to rent expense

Dr Rent expense 2,000

Cr Prepaid rent 2,000

Whichever way you recorded the transactions, the balances a the end of the year would be:

prepaid rent (asset) $10,000

rent expense (expense) $2,000

6 0

3 years ago

Fenway Electronics produces video games in three market categories: commercial, home, and miniature. Fenway has traditionally al

Ivenika [448]

THAT LINK IS A VIRUS DO NOT GO TO IT ALL LINKS ARE VIRUSES and also if you go to “goggle” you should see a camera icon on the top right and take a picture of the question and maybe get the answer there

8 0

3 years ago

Using the data set below, what would be the forecast for period 5 using a four period weighted moving average? The weights for e

swat32

Answer:

13,710

Explanation:

The computation of the forecast for period 5 using a four period weighted moving average is shown below:

= Weights of period 1 × Period 1 + Weights of period 2 × Period 2 + Weight of period 3 × Period 3 + Weights of period 4 × Period 4

= .05 × 10000 + .15 × 12400 + .30 × 13250 + .50 × 14750

= 5,00 + 1,860 + 3,975 + 7,375

= 13,710

4 0

3 years ago

1. Contrafic Corporation used the following data to evaluate its current operating system. The company sells items for $21 each

olga_2 [115]

Answer:

$470,000 F

Explanation:

The computation of the static budget variance of operating income is shown below:

Particulars Actual results Static budget Static budget variance Units sold 180,000 units 185,000 units

Revenues $3,780,000 $4,440,000 $660,000 U

Variable costs $1,080,000 $1,295,000 $215,000 F

Contribution margin $2,700,000 $3,145,000 $445,000 F

Fixed costs $800,000 $775,000 $25,000 U

Operating income $1,900,000 $2,370,000 $470,000 F

Note:

Multiply the selling per unit with unit sold to get the revenue amount

6 0

3 years ago