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Bezzdna [24]
2 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]2 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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Sue earned $21,000 at her waitress job last year; she also made $7,000 in tips. in addition, sue earned $95 interest on her savi
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Her gross income for the year would be $28,595
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a buyer's willingness to pay for a good plus the price of the good. the amount by which the quantity supplied of a good exceeds
White raven [17]

Answer:

A buyer's willingness to pay for a good plus the price of the good means the buyer is indifferent between buying the good and not buying it.

Surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.

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Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

6 0
2 years ago
During the annual fund-raising drive, the Cancer Society raised $900,000 in pledges of financial support for general operations.
Gnoma [55]

Answer:

$ 870,000

Explanation:

Given data:

The funds raised by the cancer society = $ 900,000

The amount that has been collected back = $ 600,000

The amount that is uncollectible = 10% of the remaining amount

i.e 10% of ( $ 900,000 - $ 600,000 ) = $ 30,000

Therefore,

the net amount of revenue the society should recognize during the current year from this pledge drive is calculated as:

= The funds raised by the cancer society  - The amount that is uncollectible

or

= $ 900,000 - $ 30,000

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= $ 870,000

4 0
2 years ago
The school board is trying to evaluate a new math program introduced to second-graders in five elementary schools across the cou
Komok [63]

Answer:

a) The chart tell us that all the point are between the upper and lower control limits, so the process is under control.

b) Since the process under control, the number of defects are controled and we know with a 99.3 % of certainty the average of them, so the program is  effective.

Explanation:

In order to draw a C chart we should calculate the  average test errors and the control limits of the chart

The average test errors is = (52+27+35+44+55)/5= 42.6 = c

This will be the middle line in the chart.

Then, the Upper and lower control limits are:

LCL=  c-m *sqr(c) and UCL= c+ m *sqr(c)

In this case, since we are told to contain the 99,7% of random variation, this means that we are working with a 6 sigma.

So m will be 3 (3 sigma) for the upper limit control and 3 (3 sigma) for the lower limit control:

LCL= 42.6 -3*sqr(42,6) = 23.0

UCL= 42.6+3*sqr(42,6) = 62.2

(the graphic is attached)

As we can see, al the test error values are between the control limits, so the program is undercontrol

Download xlsx
6 0
3 years ago
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