Answer:
See the journal entry below
Explanation:
Retained earnings A/c Dr $500,000
Dividends payable A/c Cr $500,000
Here, cash dividend is being declared by the board on 100,000 shares hence the account of retained earnings is debited and account of dividends payable is credited.
NB.
Amount = Share × Price per share
Given that;
Share = 100,000
Price per share = $5
Amount
= 100,000 × $5
= $500,000
<span>Businesses Management and Administration</span>
Had to look for the options and the answer the best fits the blank provided is PREEMPTIVE. When we say preemptive right, this is the right granted to certain shareholders in order for them to buy additional shares in the company. Hope this answers your question.
Answer:
False
Explanation:
Extrapolative expectations refer to an expectation in which there is a continuation of trend that means if the price of a property rises, then the demand is also rising and it pushed for more prices also there is a condition when the price is falling so it would also decrease in the market supply also it pushed out down
So the given statement is false
Answer:
$156
Explanation:
equipment cost = $15,500 + $1,600 = $17,100
five year useful life ⇒ double declining depreciation rate = (1 / 5) x 2 = 40%
salvage value = $6,000
- depreciation year 1 = 40% x $17,100 = $6,840, book value = $10,260
- depreciation year 2 = 40% x ($17,100 - $6,840) = $4,104, book value = $6,156
- depreciation year 3 = book value - salvage value = $6,156 - $6,000 = $156
When you use the double declining balance, depreciation expenses ceases when the book value = salvage value.
