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3 years ago

Kohler Corporation reports the following components of stockholdersâ equity on December 31, 2016:

Business

1 answer:

Flauer [41]3 years ago

4 0

Answer:

Explanation:

1. Jan 1

Paid Up Capital (6,000*15) Dr.$ 90,000

Paid in Capital in excess of par value Dr.$30,000

Treasury stock (6,000*20) Cr.$ 120,000

Jan 5. Dividend (55,000-6,0000=49,000*2) Dr.$98,000

Dividend Payable Cr.$98,000

Feb 28. Dividend Payable Dr.$98,000

Bank Cr.$98,000

July 6 Bank (2,250*24) Dr.$54,000

Paid up capital (2,250*15) Cr.$33,750

Paid in capital in excess of par (2250*9) Cr.$20,250

Aug 22 Cash (3,750*17) Dr.$63,750

Paid up capital (3,750*15) Cr.$ 56,250

Paid in capital in excess of par Cr.$7,500

Sept 5. Dividend (49,000+2,250+3,750)*2 Dr.$110,000

Divided Payable Cr.$110,000

Oct 28. Dividend Payable Dr.$110,000

Cash Cr.$110,000

Dec 31 Income Summary Account Dr.$428,000

Retained Earnings cr.$428,000

2.Statement of retained Earnings

Retained Earnings at beginning $460,000

Add; Net income for the year $428,000

Less: Dividends paid(98,000+110,000) ($208,000)

Retained earnings as at December 31,2017 $680,000

3. Stockholders' Equity Section of Balance Sheet

Retained earnings $680,000

Paid Up Capital Outstanding

(825,000-90,000+33,750+56,250) $915,000

Paid in capital in excess of par

(70,000-30,000+20250+7500) $67,750

Total stockholders' equity $1,662,750

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Quantum Technology had $652,000 of retained earnings on December 31, 20X2. The company paid common dividends of $33,300 in 20X2

loris [4]

Answer:

(a) $546,300

(b) $12.88

Explanation:

(a) Earnings available to common stockholders:

= Dividend + Retained Earnings

= 33,300 + 513,000

= $546,300

Earnings available to common stockholders means the amount available to distribute as dividend.

But the company need not pay full earnings as dividend. They may left some portion as retained earnings.

(b) Earnings per share:

= Earnings available to common stockholders ÷ no. of shares of common stock

= $546,300 ÷ 42,400

= $12.88

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2 years ago

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government s

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Answer:

The correct answer is A) Lend support to the invisible hand by maintaining property rights and political stability .

Explanation:

The absence of the government in legislative tasks related to the market is, therefore, one of the main bases of the economic theory developed by Adam Smith throughout his bibliographical work. For Smith, the leaders must deal with other areas of control more focused on defense or justice, leaving the market to its free operation.

The invisible hand presupposes that there is an inertia by which the market and its self-regulation leads individuals to make the best decisions for the majority of the population to achieve well-being. In other words, it is a kind of automatic control mechanism that compensates the actions taken as a whole, regulating social conformations.

Therefore, it is assumed that the self-regulation facilitated to the markets helps to achieve an optimal market. To do this, individuals must behave in such a way that they can act without state mediation and in pursuit of their own interest.

The metaphor of the invisible hand also supposes that individuals are encouraged or held back to produce or not to follow the level of prices that exist in the market. Prices and profits are sufficient indicative to know when to participate in the market or not. Basically, if there is profit in a market niche, this supposes a stimulus for production, while losses lead individuals to quit.

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3 years ago

Wen Co. purchased a building for $200,000. Wen paid $20,000 in lawyer and title fees. Wen also paid an additional $15,000 to mod

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Answer:

$235,000

Explanation:

A company can capitalize the cost of assets, delivery cost, legal & documentation charge and any other directly attributable cost that is incurred to bring the asset in the condition as intended by management.

Therefore, cost of asset, title fee and building modification fee shall be added in the cost of asset as follows:

Cost of Asset 200,000

Lawyer and title fee 20,000

Building Accommodation <u> 15,000</u>

Total <u>235,000</u>

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3 years ago

Introduction of checks into the payments system reduced the costs of exchanging goods and services. Another advantage of checks

sweet-ann [11.9K]

Answer:

they provide convenient receipts for purchases

Explanation:

Checks payment is a form of paying bills. They were created to allow people to make payments without carrying large amounts of cash hence convenient for purchases.They are also are safer than other forms of payment as they are traceable; when a transaction occurs and payment is made by checks, banks usually make copies of each check and the owner remains with an underlying copy from the check book.

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3 years ago

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resu

kherson [118]

Answer:

b.$60,000 outflow.

Explanation:

Cash flows from financing activities

Retiring value of bonds for cash -$60,000

Cash flow from financing activities -$60,000

Since the cash flow statement records only cash transactions. So in the given case, the bonds are retired for $60,000 in cash that reflects the cash outflow and the same is to be presented on the financial statements

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3 years ago