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Ann [662]
3 years ago
10

The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of decl

aration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry for the dividend declaration? 1.Retained earnings 9,000 Cash dividends payable 9,000 2.Retained earnings 9,000 Cash 9,000 3.Retained earnings 10,000 Cash dividends payable 10,0004. Retained earnings 10,000 Cash 10,000
Business
1 answer:
miss Akunina [59]3 years ago
8 0

Answer:

Dr Retained earnings $9,000

Cr Dividends payable                $9,000

Explanation:

The number of shares eligible for dividends is the issued common stock minus treasury stock, that is 15,000 shares(20,000-5,000),as a result ,dividends of $9000 (15,000*$0.6) were declared.

The appropriate entries on the declaration date is to debit retained earnings with $9,000 and credit dividends payable account with $9000

Upon payment, the dividends payable would be debited and cash account credited.

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Effect of Inventory Errors
pav-90 [236]

Answer:

Effect of Inventory Errors

1. Kate Interiors Company:

Ending Inventory of $378,500 counted as $366,900.

This shows that Ending inventory is undervalued by $11,600 ($378,500 - 366,900).

The cost of goods sold will be overstated by $11,600 and the net income understated by $11,600 in the income statement.

In the balance sheet, the assets are understated by $11,600 and Equity (Retained Earnings) understated by the same amount.

2. Waterjet Bath Company:

Ending Inventory of $719,880 counted as $728,660.

This shows that Ending inventory is overvalued by $8,780 ($728,660 - 719,880).

The cost of goods sold will be understated by $8,780 and the net income overstated by $8,780 in the income statement.

In the balance sheet, the assets are overstated by $8,780 and the Equity (Retained Earnings) overstated by $8,780.

Explanation:

An overstatement of Ending inventory results in understated cost of goods sold and overstated net income.  Conversely, an understatement of ending inventory results in overstated cost of goods sold and understated net income.

7 0
2 years ago
there are differences between leasing and buying a car. when you _____, you own the car when you finish paying. purchase a car w
Sedbober [7]
When you buy a car, you own the car when you finish paying. Leasing is when you rent it.
3 0
3 years ago
Read 2 more answers
When financing a car, you must pay ___ on the amount borrowed.
goldfiish [28.3K]
The answer is interest. whenever you take a car loan from a bank or a financial institution, you always have to pay interest on the amount borrowed or the principal amount. the interest is how the financial institution or bank will earn through lending money
7 0
3 years ago
What would be you KPIs as the finance and human Resource officer?
Debora [2.8K]

Answer:

1.37 - 1.90

Explanation:

Really hard to say a exact number but here's and idea.

6 0
2 years ago
The minimum possible value of the "Frequency of Championships" Herfindahl-Hirschman Index is:__________.
Virty [35]

Answer:

1/N

Explanation:

Herfindahl-Hirschman Index is used to measure the market concentration and market competitiveness of firm(s).

A major advantage of this index is that it is easy to calculate while using  small amount of data required for calculation.

It been used by government agencies such as the U.S. Department of Justice for cases involving mergers and acquisition.

Since we are concerned with the minimum possible value we divide \frac{1}{N}.

7 0
2 years ago
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