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Naily [24]
3 years ago
8

Following is a recent BusinessSoftware Corp. press release: REDMOND, Wash.—March 16, 2016 — BusinessSoftware Corp. today announc

ed that its board of directors have declared a quarterly dividend of $0.18 per share. The dividend will be payable on June 9, 2016, to shareholders of record on May 19, 2016. The ex-dividend date will be May 17, 2016 Prepare the journal entries BusinessSoftware Corp. used to record the declaration and payment of the cash dividend for its 8,600 million shares.
Business
1 answer:
Dimas [21]3 years ago
5 0

Answer:

Explanation:

1. The journal entry for declaration of dividend is shown below:

Retained Earnings A/c Dr

= (8,600 million shares × $0.18 per share) = $1,548 million

          To Dividend payable in cash                                         $1,548 million

(Being dividend is declared)

2. No journal entry should be passed on the record date

3. The journal entry for payment of the cash dividend is shown below:

Cash dividend payable A/c Dr     $1,548 million

      To Cash                                                              $1,5480 million

(Being payment is made for cash dividend)

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Kingbird Company has the following stockholders’ equity accounts at December 31, 2017.Common Stock ($100 par value, authorized 8
viktelen [127]

Answer:

Journal Entries :

1.

Common Stocks $29,400 (debit)

Cash $29,400 (credit)

2.

Dividends Declared $174,300 (debit)

Shareholders for Dividends $174,300 (credit)

3.

Shareholders for Dividends $174,300 (debit)

Cash $174,300 (credit)

4.

Cash $30,600 (debit)

Common Stocks $30,600 (credit)

5.

Common Stocks $48,300 (debit)

Cash $48,300 (credit)

6.

Cash $29,100 (debit)

Common Stocks $29,100 (credit)

Explanation:

1.

Common Stocks $29,400 (debit)

Cash $29,400 (credit)

Purchase Cost = 300 shares × $98 = $29,400

2.

Dividends Declared $174,300 (debit)

Shareholders for Dividends $174,300 (credit)

Dividend Calculation = (8600 - 300) × $21 = $174,300

<em>Note : Recognize the Liability : Shareholders for Dividends and recognise the Equity Element : Dividends Declared</em>

3.

Shareholders for Dividends $174,300 (debit)

Cash $174,300 (credit)

<em>Note : De-recognize the Liability : Shareholders for Dividends and De -recognize the Assets of Cash.</em>

4.

Cash $30,600 (debit)

Common Stocks $30,600 (credit)

Proceeds  = 300 shares × $102 = $30,600

5.

Common Stocks $48,300 (debit)

Cash $48,300 (credit)

Purchase Cost = 460 shares × $105 = $48,300

6.

Cash $29,100 (debit)

Common Stocks $29,100 (credit)

Proceeds  = 300 shares × $97 = $29,100

5 0
3 years ago
Under a contractionary taxation policy, the government can reduce the deficit by
AlexFokin [52]

Answer:

c

Explanation:

not sure but I tried may best tho

7 0
3 years ago
Read 2 more answers
Bonita is considering changing jobs and plans to roll over the vested portion of her qualified retirement plan into either an IR
jasenka [17]

Answer:

a) II only

Explanation:

Bonita is planning to join the new company because there is an availability of getting a loan from the company. Unlike her previous employer, the new employer has different packages for employees such as retirement plans as well as the available of loans for employee. Therefore, it can be concluded that the correct option is a.

6 0
3 years ago
Fred contributes cash of $350,000 to Strumble Partnership for his 50% interest in the partnership. For his 50% interest Gary con
n200080 [17]

Answer:

Gary's Basis in the partnership interest is $155,000

Explanation:

Particulars                                                                                Amount ($)

Adjusted Basis Of Land                                                          250000

Mortage*Share In Percentage ($200000*50%)                    (100000)

Additional Borrowing*Share In Percentage ($50000*50%)   (25000)

#Difference*Share In Percentage ($100000-$40000)*50%     30000

          Basis                                                                                    155000

Difference:

Net Income                                                                                   100000

Distribution Of Each Partner*2 ($20000*2)                                   (40000)

8 0
3 years ago
HUD, Co. had a beginning retained earnings of $29,825. For the year, the company had net income of $6,540 and paid dividends of
marissa [1.9K]

Answer:

$38,265

Explanation:

Beg RE = $29,825

Plus Net Income = $6,540

Minus Dividends = ($2550)

Plus New Stock = $4450

Ending RE = $38,265

6 0
2 years ago
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