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alexgriva [62]
3 years ago
10

Ballou Corporation declared a cash dividend on December 13, 2018, payable on January 10, 2019. By mistake, the company failed to

make a journal entry in December 2018. The effect of this error on the financial statements as of December 31, 2018 were:_____.
a. retained earnings was overstated and liabilities were understated.
b. retained earnings was overstated and cash were understated.
c. retained earnings and liabilities were both understated.
d. retained earnings and liabilities were both overstated.
Business
1 answer:
sertanlavr [38]3 years ago
5 0

Answer:

a. retained earnings was overstated and liabilities were understated.

Explanation:

Since in the cash dividend is declared also the same is not recorded by the company

So this error would impact the two account i.e. retained earnings and the liabilities

In this, the retained earning is overstated and the liabilities were understated

Therefore the correct option is a.

And, the rest of the options are wrong

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"Consider a C corporation. The corporation earns $13 per share before taxes. After the corporation has paid its corresponding ta
Eddi Din [679]

Answer:

$1.41144

Explanation:

<em>Assuming that </em><em>distribution of its earning to its shareholder is 30% </em><em>as against the 0% which is likely a mistake because the tax rate on dividend income of 27% is also given in the question</em>

Earning before tax                $13

Less: Corporation tax           <u>$5.46</u>

($13 * 42%)

Earnings after tax                 <u>$7.54</u>

<u />

Dividend distribution = $7.54 * 30% = $2.262

After tax dividend = $2.262 * (1-0.27) = $2.262 * 0.78 = $1.7643

Shareholder earnings after Income tax = $1.7643 * (1 - 0.20) = $1.7643 * 0.80 = $1.41144

Therefore, the Shareholder earnings from the Corporation assuming the <em>distribution of its earning to its shareholder is 30% </em>is $1.41144

4 0
3 years ago
Suppose that the equilibrium wage for teachers in Michigan is $15/hour. Also suppose that Michigan raises its minimum wage to $1
Iteru [2.4K]

Answer:

a. Lower b. Decrease c. Surplus

Explanation:

The equilibrium wage rate is $15.

The minimum wage is fixed at $16.

a. The equilibrium wage is lower than minimum wage.

b. The higher minimum wage will lead to reduction in the number of teachers employed as the cost of hiring goes up.

c. There will be a surplus in the number of teachers, as with increased wages, the supply of teachers will be higher than demand.

4 0
4 years ago
The factor that has the greatest impact on your credit score
hammer [34]
Any amount of debt of late fines you owe
3 0
3 years ago
Read 2 more answers
The Parks and Recreation Department of Burkett County estimates the initial cost of a river park to be $2,200,000, annual upkeep
asambeis [7]

Answer:

B/E ratio 1.2356

Explanation:

B/E = \frac{PV \: cash-flow}{initial \: cost\: + operating \: cost \: PV}

300,000 - 43,000 = 257,000

257,000/0.04 = 6,425,000

initial cost 2,200,000

unkeep cost 120,000/0.04 = 3,000,000

6,425,000/(2,200,000+3,000,000) = 1.235576923

Note we are given a discount rate, which means the upkeep, benefits and disbenefits are perpetual.

4 0
3 years ago
Which design-thinking tool is most likely to help an Agile Release Train (ART) during Program Increment (PI) Planning to ensure
weqwewe [10]

Answer:

Whole product thinking

Explanation:

Since in the question it is mentioned that the tool for design thinking would be help for ART at the time of Increment in program planning so that it would delivered a solution i.e. different from competitive offering , the tool i.e. required is whole product thinking as it measures the actual and expected value how such solution would meet the customer needs

Therefore the above is the answer

6 0
3 years ago
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