Since the preferred stocks are cumulative in nature, the dividend amount not paid in the current year will be accumulated and paid in the next year.
Preferred dividend to be paid in 2017 = Value of preferred stock x Dividend rate
= (4700 x $50) x 5%
= 11750
Dividend to be paid in 2018 = same as 2017 as no new preferred stock issued
= 11750
Total dividend to be paid in 2018 = Dividend to be paid in 2018 + Dividend to be paid in 2017 – Dividend paid in 2017
= 11750 +11750 -7900
= $15600
A company bills customers for services provided. the company records this transaction with a Debit Accounts Receivable.
A customer is an individual or business that purchases goods or services from another business. Customers are important because they drive sales. Without them, companies cannot continue to exist.
The definition of a customer is a person who purchases products or services at a store, restaurant, or other retail establishment. An example of a customer is someone who goes to an electronics store and buys a television. (informal) A person, especially a person, who interacts with others in some way.
In sales, commerce, and business, customers (sometimes called customers, purchasers, or purchasers) receive goods, services, products, or ideas obtained from sellers, vendors, or suppliers through financial transactions. is a person. Transaction or exchange for money or other valuable consideration
Learn more about customers here:brainly.com/question/380037
#SPJ4
Answer:
they are able to set their own hours and policies.
Establish prices.
Mall Critical decisions on how to operate the company.
Some people don't want to work for a boss. Others have an innovative mind or brilliant idea
People also engage in business to make a difference in the world.
Answer:
Dr Material Inventory $13,020
Cr Trade Payables $13,020
Dr Work In Progress $9,742
Cr Material Inventory $9,742
Explanation:
On 7th May the double entry would be to record the inventory purchases on credit which would increase the inventory by $13,020 (620*21) as under:
Dr Material Inventory $13,020
Cr Trade Payables $13,020
The material sent to production or manufacturing team would be recorded as increase in the work in progress by the value of the material issued which is $9,742 (211*$19 + 273*$21).
Dr Work In Progress $9,742
Cr Material Inventory $9,742
Answer:
a. Treasury stock cannot be shown as an asset because a company cannot buy itself.
b) Gain or loss on sale of treasury stock is not to be treated as income, it should be added or subtracted from share capital because it is a capital transaction.
c). Treasury stock is not an asset. Dividends received from treasury stock cannot be treated as income, it is only assets that generates income.
Explanation:
When corporations for some strategic reasons and the desire to maintain and stabilize the shareholders wealth decide to buy back some of its shares, that is what is known as treasury stock. It is also called reacquired stock
a. The treasury stock is like a corporation acquiring itself, so it cannot be shown as an asset, it is only a reclassification within the same balance sheet.
b. Gains or loss on sale of treasury stock is not an income transaction, it is a transaction that affects the share capital of the corporation and must be charged to the share capital not the income.
c. Since treasury stock is not an asset, dividend received on treasury stock is not to be treated as income, it is only assets that generates income. it should affect retained earnings.
