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Bezzdna [24]
3 years ago
11

Rick Co. had 36 million shares of $3 par common stock outstanding at January 1, 2018. In October 2018, Rick Co.'s Board of Direc

tors declared and distributed a 3% common stock dividend when the market value of its common stock was $57 per share. In recording this transaction, Rick would:
Business
1 answer:
larisa86 [58]3 years ago
3 0

Answer:

The correct answer is Debit retained earning $61.56 million.

Explanation:

According to the scenario, the computation of the given data are as follows:

Total shares = 36 million

Common stock dividend = 3%

So, Issued share = 36 million × 3% = 1.08 million

So, retained earning = Issued share × Market value

= 1.08 million × $57 = $61.56 million

Where common stock = $3 par

So Common stock value = 1.08 million × $3 = $3.24 million

And capital paid in excess can be calculated as:

capital paid in excess = 1.08 million × ( $57 - $3) = 1.08 million × $54

= $58.32 million

So, the journal entry can be made as:

Retained earning A/c Dr   $61.56 million

To Common stock value A/c $3.24 million

To capital paid in excess A/c $58.32 million

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10 months ago
Temporary employment that can become permanent employment after a period of evaluation by the employer defines _____.
tiny-mole [99]
It is C, the guy above or below me was indeed correct! i think at least. im taking the test rn
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3 years ago
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You are considering investing in one of the these three stocks:Stock Standard Deviation BetaA 20% 0.59B 10% 0.61C 12% 1.29If you
Drupady [299]

Answer:

The correct option is B.

Explanation:

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In this situation, will look at the standard deviation (SD). The larger the SD, it states that outcome will be dispersed widely and smaller SD, states that the outcome or result will be more tightly cluster around the expected value. So, because of this will be choosing the Stock B for isolation and Stock A for portfolio which well diversified.

4 0
3 years ago
Halo effect and "Devil's Horns" are associated with which selection activity? Select one: a. Background checking b. Preliminary
Marysya12 [62]

Answer:

C. Interviews

Explanation:

In an interview, there is personal contact between the interviewer and the person interviewed. In this context, first impressions are very important (this is why people are advice to dress and groom themselves well before going to an interview).

A postive first impression can result in a general positive bias when analyzing the person. This is the halo effect and can become helpful in securing the job.

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3 years ago
A leveraged buyout refers to a(n): a. restructuring action whereby a party buys all of the assets of a business, financed largel
Alexxx [7]

Answer:

a. restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private

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I hope my answer helps you

4 0
3 years ago
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