Answer:
$10,000
Explanation:
As provided no equity is issued, therefore,
Common stock + Net income = Stockholder's equity
We know common stock = $70,000
Further there might be some dividend paid, which shall be deducted from net income to compute total value of Stockholder's equity.
Therefore,
$70,000 + $18,000 - Dividend = $78,000
$88,000 - $78,000 = Dividend = $10,000
Therefore, dividends paid during the month = $10,000
<u>Answer</u> is D. remain at $30,000.
<u>Explanation:</u>
Rick's Internet Corporation balance in retained earnings = $30,000
Appropriated earning for future business expansion = $15,000
This appropriated earning set for future use will have no effect on the total retained earnings, because for appropriate retained earnings, the entry is to debit the retained earnings account.
Also, it would be board's decision if they want to use the money from the retained earnings or add more capital to it.
Answer:
Value of one right = $2.63
Explanation:
<em>A right issue is the issue of additional new shares to existing shareholders in proportion to their existing shareholdings at a price less than the current market price.</em>
<em>The value of rights is the difference between the theoretical ex-right price and the right price . </em>
Value of rights= Theoretical ex-right price - Right price
<em>The theoretical ex-right price is the price at which a share is expected to settle after the right issue assuming all the rights are taken</em>
Theoretical ex-rights price = Total value of shares after right issue/Number of shares after right issues
<em />
1 unit of old share at $25.25 = $25.25
I unit of right share at $20.00= <u>$20.00</u>
Total value of 2 shares <u>$ 45.25</u>
Theoretical ex-rights price = 45.25/2 =$22.63
Theoretical ex-rights price=$22.63
Value of rights= Theoretical ex-right price - Right price
= 22.63 - 20.00
Value of one right = $2.63
Answer: Sequential Interdependence.
Explanation:
Sequential Interdependence in a
organization is the dependence of a department on another department in that organization for resources or machines that they have just concluded using. Sequential Interdependence also explains the reliance of a department on the information that directly emanates from another department.
Answer:
a. Received investment of cash by organizers and distributed to them 1,180 shares of $1 par value common stock with a market price of $15 per share.
Account Debit Credit
Cash $17,700
Common Stock $1,180
Additional Paid-In Capital $16,520
Assets increase, and stockholder's equity increase by the same amount: $17,700.
b. Purchased $8,200 of equipment, paying $1,500 in cash and owing the rest on accounts payable to the manufacturer.
Account Debit Credit
Equipment $8,200
Cash $1,500
Accounts Payable $6,700
Assets increase by a net $6,700 (Equipment - Cash), and Accounts Payable by $6,700 as well.
c. Borrowed $14,000 cash from a bank. Loaned $800 to an employee who signed a note.
Account Debit Credit
Cash $14,000
Notes Payable $14,000
Notes Receivable $800
Cash $800
Assets increase by a net $14,000 (Cash + Notes Receivable - Cash), and liabilities increase by $14,000
d. Purchased $20,343 of land; paid $9,000 in cash and signed a note for the balance.
Account Debit Credit
Land $20,343
Cash $9,000
Notes Payable $11,343
Assets increase by a net $11,343 (Land - Cash), and liabilities increase by the same amount.
