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
A few years ago, simon powell purchased a home for $225,000. today, the home is worth $400,000. his remaining mortgage balance i
belka [17]
To find Simon's maximum amount he can borrow against his home you will use the Home Loan Value Formula. 

Home is worth: $400,000
Remaining balance: $175,000
Borrow: up to 75% on home

First, you'll want to take the market value of $400,000 and multiply it by 75% (.75) which gives you $300,000.
Then, you'll need to subtract what Simon owes on the home to find the amount he can borrow. 
$300,000 - $175,000 = $125,000 
Simon can borrow $125,000 against his home.
5 0
3 years ago
Grace Owen formed a corporation with three of her friends for purposes of operating a catering company. Grace used her own check
andrezito [222]

Answer:

Grace is incorrect because of the veil and alter ego theory

Explanation:

In this scenario Grace formed a corporation along with her three friends. As a result of catering services offered guest became ill and sued Grace and the other owners for damages.

According to the alter egos theory personal liability can be invoked on the owners of a corporation or its limited liability members.

Alter ego theory is used to penetrate the corporate veil that protects shareholders. Personal liability can be assigned on the business owner as it is in this case against Grace and the other owners.

7 0
3 years ago
When this market is in equilibrium, price is $ $6 and quantity bought and sold is 300 units. In equilibrium, consumer surplus is
Gnom [1K]

Answer: hello your question is incomplete attached below is the missing information

Answer :

$900

$600

<u>Given the new price of $4 by Government </u>

quantity demanded = 400 units

quantity supplied = 150 units

quantity bought and sold = 150 units

  • $975
  • $150
  • $375

Explanation:

Consumer surplus ( area below demand curve and above $300  

= Area of triangle = 0.5 * base * height

= 0.5 * 300 ( 12 - 6 )  = $900

producer surplus ( area above supply curve and below $300

=  Area of the triangle = 0.5 * 300 ( 6-2 ) = $600

<u>Given the new price of $4 by Government </u>

quantity demanded = 400 units

quantity supplied = 150 units

quantity bought and sold = 150 units

Consumer surplus ( area of triangle + area of rectangle )

= 0.5 * 150 * ( 12-9 )+ L*B

= 0.5 * 150 * ( 3 ) + 150 * ( 9 - 4 )  = $975

producer surplus ( Area of triangle )

= 0.5 * 150 * (4-2) = $150

deadweight loss ( area of triangle )

= 0.5 * ( 300 - 150 ) ( 9-4 )

= $375

6 0
2 years ago
Ramos Company has the following unit costs: Variable manufacturing overhead$15 Direct materials 13 Direct labor 17 Fixed manufac
zhannawk [14.2K]

Answer:

Unitary cost= $56

Explanation:

Giving the following information:

Variable manufacturing overhead $15

Direct materials $13

Direct labor $17

Fixed manufacturing overhead $12

Fixed marketing and administrative $11

Under absorption costing, the fixed overhead is allocated to the product cost:

Unitary cost= direct material + direct labor + variable overhead + fixed overhead

Unitary cost= 13 + 17 + 15 + 11= $56

3 0
3 years ago
A company has only two divisions: division a and division
Sloan [31]

Answer – Division A

 

EXPLANATION’

 

Given for last year,

Division A made 60% of the company's total revenue.

Let the company’s total revenue for last year be x

60% of x = 0.6x

Division A made 0.6x last year

 

Also given for last year,

Division B made 40% of the company's total revenue.

If the company’s total revenue for last year is x

40% of x = 0.4x

Division B made 0.4x last year

 

For this year,

We are told that division A's revenue has decreased by 35%

Last year’s revenue was 0.6x

Division A’s revenue for this year = 0.6x – (35% of 0.6x)

= (100% of 0.6x) – (35% of 0.6x)

= (100% * 0.6x) – (35% * 0.6x)

= (100% - 35%) * 0.6x

= 65% * 0.6x

= 65/100 * 0.6x

= 0.39x

Therefore this year, Division A’s revenue is 0.39x

 

Again for this year,

We are told that division B's revenue has decreased by 5%

Last year’s revenue was 0.4x

Division B’s revenue for this year = 0.4x – (5% of 0.4x)

= (100% of 0.4x) – (5% of 0.6x)

= (100% * 0.4x) – (5% * 0.4x)

= (100% - 5%) * 0.4x

= 95% * 0.4x

= 0.38x

Therefore this year, Division B’s revenue is 0.38x

 

If Division A’s revenue is 0.39x, and Division B’s revenue is 0.38x; then Division A had higher revenue this year.

4 0
3 years ago
Other questions:
  • Suppose you are in the T-shirt business. The cost of your ink supplies increases as the quantity of T-shirts produced decreases.
    10·1 answer
  • King Costume started the month with 8 masks in its beginning inventory that cost $10 each. During the month, King Costume purcha
    15·1 answer
  • Francis Companyhas 24,000 shares of common stock outstanding at the beginning of 2019. Francis issued 3,000 additional shares on
    14·1 answer
  • In part, a transaction affects the accounting equation by decreasing an asset. There is no effect on liabilities. Which of the f
    14·1 answer
  • Beech Corp., an accrual-basis, calendar-year S corporation, has been an S corporation since its inception. At the beginning of t
    10·1 answer
  • The maturity date of a note receivable: Multiple Choice
    7·1 answer
  • Which of the following statements is true about profits in a monopolistically competitive market? A. Most firms will earn substa
    13·1 answer
  • What was the significance of NAFTA?
    12·1 answer
  • A company may choose to launch the same advertising campaign globally. This particular campaign may be launched with identical p
    13·1 answer
  • How does adaptability assist a school leaver to become a successful business owner
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!