1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Evgesh-ka [11]
3 years ago
8

The board of directors of Capstone Inc. declared a $0.40 per share cash dividend on its $3 par common stock. On the date of decl

aration, there were 51,000 shares authorized, 23,000 shares issued, and 5,000 shares held as treasury stock. What is the entry when the dividends are declared?
Business
2 answers:
dimaraw [331]3 years ago
8 0

Answer: please refer to the explanation section

Explanation:

Dr Retain earnings   9200

Cr         Dividends Payable (liability)   9200

When shares are declared, the company creates an obligation to pay dividends. Declaring Dividends creates a  Liability. Retained earnings account decreases ( Debited ) and Liabilities increase, we credit dividends payable.

Shares held as treasury stock do not receive dividends,

Dividends payable = 23000 shares x 0.40 = 9200

Doss [256]3 years ago
6 0

Answer:

$7,200

Explanation:

To solve this problem, we use the calculation of dividends formula.

This is represented as follows:

Dividends = (Number of shares issued - Treasury stock held) * dividend per share

According to the parameters in the question, number of shares issued = 23,000

Treasury stock held = 5,000

Dividend per share = $0.40

Substituting these values, we have:

Dividends = (23,000-5,000) * $0.4

Dividends = 18,000 * $0.4 = $7,200

The entry when the dividend is declared is $7,200

You might be interested in
Mistakes made by staff are affecting overall efficiency, so you have contacted the local community college to inquire about cust
Tamiku [17]

Answer:

sign up for either program

Explanation:

By ensuring that the Staff participate in the training, it will enable the staff to minimize mistakes and improve overall efficiency. Efficiency is important to maintain operations.

5 0
3 years ago
What is a major plan that organizes several other plans?
Eva8 [605]
I think it’s D I’m not sure
5 0
2 years ago
Imagine that you are a management coach and one of your clients, a new manager, says, "I’ve heard that about two thirds of manag
Schach [20]

Answer:

I think 1 and 3

Explanation:

8 0
3 years ago
Kahn Inc. has a target capital structure of 45% common equity and 55% debt to fund its $9 billion in operating assets. Furthermo
maxonik [38]

Answer:

Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%

Explanation:

WACC = Weight of Equity * Cost of Equity + Weight of Debt * (1-Tax rate) * Cost of Debt

16% = 45%* Cost of Equity + 55%*(1-40%)*9%

16%-55%*(1-40%)*9% = 45%*Cost of Equity

Cost of Equity = 28.9556%

Current price of Stock = D1/(Cost of Equity - Growth)

25 = 4/(28.9556%-Growth)

Growth = 28.9556%-4/25 = 12.96%

ROE = Net income/Equity = 1.4/(45%*9)

Growth rate = (1- Payout ratio)*ROE

12.96% = (1-Payout ratio)*  1.4/(45%*9)

Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%

4 0
3 years ago
When you purchase an item in a store you may be charged
labwork [276]
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
When you purchase an item in a store you may be charged by Sales tax. It is <span>a tax on sales or on the receipts from sales.</span>
6 0
2 years ago
Other questions:
  • ___ is the process of examining, documenting, and assessing the security posture of an organization’s information technology and
    6·1 answer
  • Which two careers would have a stage as a workplace? A/V technology and the performing arts the visual arts and telecommunicatio
    11·2 answers
  • A customers calls her broker to discuss her account. The broker recommends that the customer buy 500 shares of DEF stock. The cu
    8·1 answer
  • You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at the time of purchase. The coup
    9·1 answer
  • Baxter Company's merchandise inventory at the start of 2014 was $85,000. The company purchased inventory during 2014 in the amou
    13·1 answer
  • A restaurant supply store is trying to determine how many boxes of a certain commonly used item to order. They estimate that tha
    8·1 answer
  • Stephen, chief financial officer of Pluto Inc., is considered to be a very organized and disciplined leader by his employees, th
    11·1 answer
  • If workers are more educated, then short-run aggregate supply ___________.
    11·1 answer
  • Determine the starting current (LRC)
    8·1 answer
  • Amaya is a member of a new product design team. The team leader proposed a process that would get quick results, but Amaya was c
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!