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zaharov [31]
3 years ago
9

The issuance of common stock and declaration and payment of cash dividends will result in the following:

Business
1 answer:
jeka943 years ago
8 0

Answer: a. Increase in financing activities for the issuance and a decrease in financing activities for the dividends.

Explanation:

When using the Indirect method of the Cash Flow Statement, you will find 3 sections namely, the Operating Activities, Investing Activities and Financing Activities.

The Operating Activities deal with the normal business Transactions and related entries that keep the business running.

Investing Activities have to do with entries related to Non Current Assets as well as stocks and bonds in other companies.

The above relates to the Financing Section that handles the raising of Capital needed to run the business. They include long term debt and Equity.

When new Equity is announced it is a Cash inflow for the business meaning that there will be an INCREASE in Financing Activities.

Dividends have the effect of reducing Equity so it is a Cash Outflow. This means that there will be a DECREASE in Financing Activities as a result of the declared Dividends.

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Fisher Company has 1,000,000 share of common stock with a par value of $10. Additional paid-in capital totals $10,000,000 and re
aleksley [76]

Answer:

B. $300,000

Explanation:

The computation of the reduction of retained earning amount is shown below:

= Number of shares of common stock × stock dividend percentage × market value

= 1,000,000 shares × 6% × $5

= $300,000

Since the dividend amount is adjusted while computing the ending balance of retained earning balance and the same is to be considered in the computation part.

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
Greta is the only female employee in the maintenance department of Hydro Hydraulics Inc. Greta’s supervisor and co-workers tease
Vladimir [108]
Isnt this a form of peer pressure?

5 0
3 years ago
Which would be an example of sustainable development? a. Current use of fossil fuels in the U.S. b. Heap-leach extraction of gol
Setler [38]

Answer:

The correct answer is letter "D": Development of brownfields in urban areas.

Explanation:

In urban planning, sustainable development refers to continuous activities that can be performed during extended periods of time. They are the result of repeated patterns of individuals who, sometimes unconsciously, provoke more and more individuals to repeat their actions.

Under such a scenario, <em>the development of brownfields in urban areas is the result of building more department complexes in the cities because of the increasing need for renting and selling houses as a result of the increasing population growth.</em>

5 0
3 years ago
Read 2 more answers
Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's firs
miv72 [106K]

Answer:

1) Mason Automotive sells 10,000,000 shares at $5 par for $30 on January 1st, 2018.  

Dr Cash 300,000,000

   Cr Common stock 50,000,000

   Cr Additional paid in capital 250,000,000

2) Ed Mason, the CEO, hires 3,000 employees, whom will receive a combined salary of $12 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2019.          

No journal entry required

Adjusting entry:

January 31, 2018, wages expense

Dr Wages expense 12,000,000

Dr FICA taxes expense 840,000

   Cr Federal income taxes withheld payable 1,200,000

   Cr State income taxes withheld payable 600,000

   Cr FICA taxes withheld payable 840,000

   Cr FICA taxes payable 840,000

   Cr Wages payable 9,360,000

3) Mason Automotive issues a bond payable on January 1st, 2018 with a face value of $200 Million at 102. The bond will have a useful life of 5 years with an interest payment of 5% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 1st,  2018.

Dr Cash 204,000,000

   Cr Premium on bonds payable 4,000,000

   Cr Bonds payable 200,000,000

(Note: When considering the amortization of the discount or premium, assume the straight line method is used).  

Adjusting entry        

January 31, 2018, interest expense

Dr interest expense 766,666.66

Dr Premium on bonds payable 66,666.67

   Cr Interest payable 833,333.33

4) Mason Automotive purchased $80 Million dollars worth of inventory on January 2nd, 2018. $80 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.  

Dr Inventory 80,000,000

       Cr Accounts payable 80,000,000      

5) Mason Automotive purchases fixed assets of $120 Million that will have a useful life of 10 years and no salvage value on January 2, 2018. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.  

Dr Fixed assets 120,000,000

   Cr Cash 20,000,000

   Cr Accounts payable 100,000,000

Adjusting entry:

January 31, 2019, depreciation expense  

Dr Depreciation expense 1,000,000

   Cr Accumulated depreciation - fixed assets 1,000,000    

6) On January 2nd, Mason Automotive shipped an order to Corby Panther Company. The shipping terms were FOB shipping point and the value of the order was $50 Million and the inventory cost was $20 Million. Assume that this sale was made on account.          

Dr Accounts receivable 50,000,000

   Cr Sales revenue 50,000,000

Dr Cost of goods sold 20,000,000

   Cr Inventory 20,000,000

Adjusting entry:

January 31, 2018, allowance for doubtful accounts (5%)

Dr Bad debt expense 2,500,000

   Cr Allowance for doubtful accounts 2,500,000

7) On January 3, Mason Automotive receives $75 Million advance payment from a customer, Michael Scott Paper Company, to manufacture 7,500 cars.        

Dr Cash 75,000,000

   Cr Deferred revenue 75,000,000

Adjusting entry:

January 31, 2019, 4,000 cars were finished and delivered

Dr Deferred revenue 40,000,000

   Cr Sales revenue 40,000,000

Dr Cost of goods sold 32,000,000

    Cr Inventory: finished cars 32,000,000

8) Mason Automotive buys a patent from Apple for $24 Million on January 3rd, 2018. The patent has a legal life of 20 years, but a the useful life of 10. Record the necessary entry as of January 3rd, 2018. Assume the patent was purchased using cash.          

Dr Patent 24,000,000

   Cr Cash 24,000,000

Adjusting entry:

January 31, 2018, patent amortization expense

Dr Patent amortization expense 200,000

   Cr Patent 200,000

9) Mason Automotive purchased $2 Million dollars worth of supplies on account on January 4, 2018.      

Dr Supplies 2,000,000

    Cr Cash 1,500,000

    Cr Accounts payable 500,000

Adjusting entry

January 31, 2018, supplies expense

Dr Supplies expense 500,000

   Cr Supplies 500,000    

10) Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $2.4 Million on January 4, 2018.  

Dr Prepaid rent 12,000,000

Dr Prepaid insurance 2,400,000

   Cr Cash 14,400,000

Adjusting entries:

January 31, 2019, rent expense

Dr Rent expense 1,000,000

   Cr Prepaid rent 1,000,000

January 31, 2019, insurance expense

Dr Insurance expense 200,000

   Cr Prepaid insurance 200,000        

11) On January 20th, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $25 per share.

Dr Treasury stock 50,000,000

   Cr Cash 50,000,000

<h2><u>Closing journal entries:</u></h2>

Dr Sales revenue 90,000,000

    Cr Income summary 90,000,000

Dr Income summary 71,006,66.66

    Cr Wages expense 12,000,000

    Cr FICA taxes expense 840,000

    Cr interest expense 766,666.66

    Cr Depreciation expense 1,000,000

    Cr Cost of goods sold 52,000,000

    Cr Bad debt expense 2,500,000

    Cr Patent amortization expense 200,000

    Cr Supplies expense 500,000

    Cr Rent expense 1,000,000

    Cr Insurance expense 200,000

Dr Income summary 18,993,333.34

    Cr Retained earnings 18,993,333.34

8 0
3 years ago
Which of the following are acceptable to use as references on a resume/job application? A. Past employers B. Teachers C. Family
Kaylis [27]
The correct option is D.
When writing a resume or an application letter, the only kind of people that one can use as referees are teachers and employers. These people are considered suitable as referees because they will be able to give honest account of one's capacity and intelligence.
4 0
3 years ago
Read 2 more answers
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