Answer:
a. No journal entry is required.
b. Par per share after the split = $2.50
Explanation:
a. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend.
No journal entry is required for this because the total value of the shares has not changed due to 2-for-1 stock split.
This is because the 2-for-1 stock split has only increased the number of shares outstanding by 2, but at the same time reduces the par value of the share by half making the total value of the shares to remain the same.
b. What is the par per share after the split.
As explained in a above, the effect of 2-for-1 stock split is to reduce the par value of the share by half.
Therefore, the par per share after the split can be calculated as follows:
Par per share after the split = Par per share before the split / 2 = $5 / 2 = $2.50
Answer:
The options are given below:
A. By obtaining the most recent letter of credit from the entity's primary financial institution.
B. By consulting the AICPA guides, industry publications, or individuals knowledgeable about the industry.
C. By researching the entity's internet site and searching for current press releases.
D. By reviewing the predecessor accountant's work papers without the knowledge of the entity.
The correct option is B.
Explanation:
The AICPA (American Institute of Certified Public Accountants) refers to the association which develops and scores the Uniform Certified Public Accountants examination. The main purpose of the AICPA is financial accounting, therefore, the association will possess information about an industry in its guides.
The accountant can consult industry publications, as this is bound to possess information regarding the industry. Also, the accountant can consult individuals knowledgeable about the industry.
Answer: Reduction of imports will move spending on another national output to spending on domestic output
Explanation:
Artificial tree barrier such as tariff and import quotas reduce unemployment in one US industry and has another industry increase it's productivity due to this effect. Reduction of imports will move spending on another national output to spending on domestic output, this would cause the domestic output and employment to rise
Answer:
all of the above
Explanation:
all of these indicates one's lifestyles.
Answer: B) Conservative Financial Policy
Explanation:
A Conservative Financial policy refers to a situation where an entity usually finances their permanent working capital with long term debt in part or in it's entirety.
It is stated that Bradford Maintainance uses long-term sources of funds to finance its assets which would point to a Conservative Financial Policy.
