Answer:
Dr.Office Supplies, $110; Dr. Merchandise inventory, $140; Dr. Miscellaneous expenses, $70; Cr. Cash over and short, $4; Cr. Cash, $316
Explanation:
The journal entries are shown below:
1. Petty cash A/c Dr $400
To Cash A/c $400
(Being petty cash fund established)
2. Office supplies A/c Dr $110
Merchandise inventory A/c Dr $140
Miscellaneous expense A/c Dr $70
To Cash over and short A/c Dr $4
To Cash A/c Dr $316
(Being disbursement of cash recorded)
Answer:
1. B. 3.14
2. C. 1.12
Explanation:
1. Times Interest Earned ratio
Measures how well a company is able to cover it's debt obligations using it's earnings.
The formula is simply,
= Earning before Interest and Tax / Interest Expense
Therefore,
Times Interest Earned ratio = 116/37
= 3.14
HHF's times interest earned ratio is Option B, 3.14.
2. Debt to Equity Ratio
This ratio compares the debt used to fund a company vs it's equity. It measures how much of either way used to fund the company.
The formula is,
= Total Debt / Total Equity
= 540/484
= 1.12
HHF's Debt to Equity ratio is 1.12, Option C.
Answer:
a) the correct answer is "B"
b) the correct answer is "C"
Explanation:
a) the correct answer is "B"
relies on nominal GDP which might have increased because of price increases and not output increases. As nominal GDP accounts for the price and it is calculated at the current price level. The answer is "B".
b) the correct answer is "C"
We can ask for growth rate of real GDP which excludes price change.
Answer:
Preference dividend = 9% x $65 x 5,700 shares
= $33,345
Dividend paid to ordinary shareholders = $50,000 - $33,345
= $16,655
Explanation:
The dividend paid to preferred stockholders is 9% of the par value multiplied by number of preferred stock outstanding. The dividend paid to common stockholders is the difference between total dividend paid and dividend paid to preferred stock holders.
