Answer:
The Journal entries are as follows:
(i) On October 1, 2014
Retained Earnings A/c Dr. $7,350,000,000
To Dividend Payable $7,350,000,000
(To record declaration of dividend on outstanding shares)
Workings:
Dividend Payable = Outstanding shares × Dividend per share
= 3 billion × $2.45
= $7.35 billion
(ii) On October 15, 2014
No Entry
(iii) On October 20, 2014
Dividend Payable A/c Dr. $7,350,000,000
To cash $7,350,000,000
(To record payment of dividend)
Assume company x deposits $100,000 in cash in a commercial bank. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, the bank can increase loans by a maximum of $500,000.
Reserve ratio = 20% = 20/100 = 0.25
Initial Money supply = (1/Reserve ratio)*New Deposit = (100,000/0.25) = $ 400,000
Reserve ratio = Rerserve / Deposit
=> Reserves = 0.25*100,000 = 25,000
Max Increase in Money Supply = Initial Money Supply + Reserves/ Reserve Ratio
= $ 400,000 + 100,000
= $ 500,000.
The term commercial bank refers to financial institutions that accept deposits, provide checking account services, issue various loans, and provide basic financial products such as certificates of deposit (CDs) and savings accounts to individuals and small businesses. refers to
Learn more about the commercial banks at
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Answer:
increase
Explanation:
the law is indirectly proportional
Answer:
A technological choice
Explanation:
Here, what you care about is taking the dollar home in form of cash not necessarily the free lunch in the restaurants. This is an example of technological choice.
Answer: The company will record a depreciation of $375 as depreciation.
We begin by calculating the depreciable value of the asset.
The depreciable value is $12,000.
The useful life of the asset is 8 years from the date of purchase.
So, the depreciation for one year will be .
Hence the depreciation for one year is
Since the equipment was purchased at the end of September, we can only charge depreciation for 3 months on 31st December.
So, the depreciation expense will be