Answer:
The Journal entries are as follows:
(i) On October 1, 2014
Retained Earnings A/c Dr. $7,350,000,000
To Dividend Payable $7,350,000,000
(To record declaration of dividend on outstanding shares)
Workings:
Dividend Payable = Outstanding shares × Dividend per share
= 3 billion × $2.45
= $7.35 billion
(ii) On October 15, 2014
No Entry
(iii) On October 20, 2014
Dividend Payable A/c Dr. $7,350,000,000
To cash $7,350,000,000
(To record payment of dividend)
Answer:
1.- For sofa it can pay at most 60 dollars per hours
2.- 17.5 per hours
3.- It should. It will create additional gains.
Explanation:
- Recliner Sofa Love Seat
Sales 1,400 1,800 1,500
variable 800 1,200 1,000
Contribution 600 600 500
Labor Hours 8 10 8
Contribution \: per \: hour 75 60 62.5
1.- Contribution per hour 60 dollars for SOFA
it can pay up to this amount.
2.-
contribution per hour - labor cost per hour = net
62.5 - 45 = 17.5 Contribution Margin per hour
3.-
It should hire it. t is generating additional profit.
Answer:
PV of Perpetuity = $5000
Explanation:
A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,
PV of Perpetuity = Cash Flow / r
Where,
- r is the required rate of return
PV of Perpetuity = 250 / 0.05
PV of Perpetuity = $5000
Depreciation is the correct answer
Answer:
d. $5,000
Explanation:
Patnode's information is missing, so I looked it up. I found the balance sheet for 2014 and 2015. Hope that it is the same question:
total depreciation expense for 2015 = change in accumulated depreciation (2015 - 2014) + change in accumulated amortization (2015 - 2014) = ($3,000 - $0) + ($3,000 - $1,000) = $3,000 + $2,000 = $5,000
