Answer:
E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.
Explanation:
The Journal entry is shown below:-
Retained earnings Dr, $7,400 (14,800 × $0.50)
To Common dividend Payable $7,400
(Being dividend declaration is recorded)
Here to record the dividend declaration we simply debited the retained earnings as it decreased the stockholder equity and credited the common dividends payable as it increased the liability
So the correct option is D.
Answer: a. $56925 ; b. Account payable
Explanation:
a. If Hoffman Company pays the invoice within the discount period, what is the amount of cash required for the payment?
Purchase invoice = $65000
Less: Return = ($7500)
Net Purchase Invoice = $57500
Less: Discount = $57500 × 1% = $575
Cash received = $56925
b. What account is debited by Hoffman Company to record the return?
The account that is debited by Hoffman Company to record the return is the account payable.
Answer:
1. $9.07
2. $25.5
Explanation:
(a) Total Cost:
= 260,000 × 60% (Wages and Salaries) + 60,000 × 50% (Other Overhead)
= $186,000
Cost of Wages and Salaries and Other Overheads Charged to Each Bouquet:
= Total Cost ÷ Total Bouquets
= $186,000 ÷ 20,500
= $9.07
(b) Total Cost:
= 260,000 × 30% (Wages and Salaries) + 60,000 × 40% (Other Overhead)
= $102,000
Cost of Wages and Salaries and Other Overheads Charged to Each Delivery:
= Total Cost ÷ Total Delivery
= $102,000 ÷ 4,000
= $25.5
