Answer:
d. Overstate, understate, understate, zero
Explanation:
The amount of earnings overall is the same. so, in the end, there is n difference in retained earnings.
But, on accrual accounting, the note should not enter the accounting as 1,000 as time value of money exist.
At 2016 the sales revenue should be the present value of 1,000 dollars not the complete 1,000 dollars. Thus, is overstated.
Then, the interest accrued from the note are not recognized. Thus, the first year (2016) recognize revenues that should be matched with 2017 and 2018
Thus, these two subsequent years ended understated.
Answer:
Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.
Explanation:
To calculate this, let B represents the number of shares Neutrino Industries must sell. Therefore, we have:
Gross proceeds = $49 * B, or $49B
Underwriter charges = 6% * $49B = $2.94B
To raise $400 million, we deduct the underwriter charges from gross proceeds and solve for B as follows:
$49B – $2.94B = $400,000,000
$46.06B = 400,000,000
B = 400,000,000 / 46.06
B = 8,684,324.79 shares, or 8.68 million shares.
Therefore, Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.
Answer:
a.
Date Account Title Debit Credit
Dec. 31, 2017 Insurance expense $2,600
Prepaid insurance $2,600
b.
Date Account Title Debit Credit
Dec. 31, 2017 Supplies Expense $9,700
Supplies $9,700
<u>Working</u>
Supplies = Beginning balance + Purchases - Closing balance
= 7,800 + 3,400 - 1,500
= $9,700
Answer:
$5,000 will be distributed to preferred stockholders and $45,000 will be distributed among common stockholders.
Explanation:
The accrued dividend on preferred stock based on predetermined rate or amount is known as preferred stock dividend. Preferred stock has priority over common stockholders, It means that dividend will be given to preferred stockholder first.
Preferred stock dividend = 4,000 shares x $25 x 5% = $5,000
Common stock dividend = $50,000 - $5,000 = $45,000