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2 years ago

Capstone Corp. reported $150,000 of comprehensive income for 2014. It also reported the following:

Business

1 answer:

babunello [35]2 years ago

8 0

Answer:

Option (D) is correct.

Explanation:

Given that,

Beginning retained earnings = $300,000

Income tax expense = $60,000

Ending retained earnings = $320,000

Cash dividends declared = $80,000

Net income:

= Increase in Retained Earnings + Dividend Declared

= (Ending Retained Earnings - Beginning Retained Earnings) + Dividend Declared

= ($320,000 - $300,000) + $80,000

= $20,000 + $80,000

= $100,000

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On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000, paying $360,000 cash and issuing

sammy [17]

Answer:

See Explanation

Explanation:

(a)

Journal entry to record the transaction is,

Particulars Debit Credit

Land and Building (460000 + 520000) $980,000

Cash Paid $360,000

Mortgage Payable (980,000 - 360,000) $620,000

We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.

(b)

First installment = Principal + Interest payable

= 31,000 + (620,000 * 0.04) = $55,800

(c)

Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560

Since the chart of accounts is not provided you can confirm the the account headings.

Hope that helps.

5 0

2 years ago

Lee Ray bought 250 shares of a mutual fund with a NAV of $13.85. This fund also has a load charge of 7%.

kolezko [41]

Answer: a. $14.9

b. $3725

Explanation:

a. What is the offer price?

This will be calculated as:

= NAV / (1 - load charge %)

= 13.85 / (1 - 7%)

= 13.85 / (1 - 0.07)

= 13.85 / (0.93)

= $14.9

B. What did Lee pay for his investment?

This will be:

= Number of shares bought × Offer price

= 250 × $14.9

= $3725

3 0

2 years ago

Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $1.25 at the end of the year. Its div

tino4ka555 [31]

Answer:

The expected/required rate of return is 13.8125%.

Explanation:

The stock is a constant growth stock as the dividends are expected to grow constantly forever. The constant dividend growth model of DDM is used to calculate the price of such a stock today. As we already know the price, we will use the formula of the constant growth model to determine the required rate of return. The formula for constant growth model is:

P0 or Price today = D1 / r - g

Plugging in the available known values,

16 = 1.25 / (r - 0.06)

16 * (r - 0.06) = 1.25

16r - 0.96 = 1.25

16r = 1.25 + 0.96

r = 2.21 / 16

r = 0.138125 or 13.8125%

3 0

2 years ago

In March, Nigel agrees to sell manufactured goods to Marilyn, who agrees to pay for the goods by a promissory note, payable in s

Brilliant_brown [7]

Answer:

Marilyn take a good decision.

Explanation:

Marilyn refuses to pay Carl because Marilyn did not sell any goods due to its bad quality so Marilyn earn no money and is unable to pay Carl. Marilyn will be able to pay Carl if the goods are sold and she has the money but when there is no sale at all, Marilyn is unable to pay for the goods on the due time. Marilyn should return the goods to Nigel instead of paying money for it because these goods are useless and nobody will it at all.

4 0

2 years ago

Which of the following is true about goods and services?

Angelina_Jolie [31]

U need to provide the options we can pick from please

3 0

1 year ago