Answer:
Entry's
Debit Credit
Retained earnings 100,000
Dividend payable 100,000
Explanation:
Because the dividend is declared in July but not paid in July the entry in July will be of dividend payable and not cash, dividend payable will be credited as it is a liability which is increasing and we credit when a liability increases. Secondly we will debit retained earnings because the dividends will be paid from the retained earnings and whenever retained earnings decrease we debit them. We calculate the amount by multiplying the number of shares by the dividend per share (50,000*2) = 100,000
Answer:
- Digby will issue stock totaling $1,023,000
- Long term debt will increase from $33,575,852 to $34,598,852
Explanation:
50,000 shares were issued at $20.46.
This means the total raised from stock sales were:
= 50,000 * 20.46
= $1,023,000
Long term debt will increase by:
= Debt + New issue
= 33,575,852 + 1,023,000
= $34,598,852
<em>Note: The options listed are most probably for a variant of this question. Also, Stock issues are considered equity but for the sake of this question are considered Long term debt. </em>
Answer:
The answer is: The investor received a 10% ($1000) return on his investment.
Explanation:
Lets say the investor bought $10,000 worth of stocks on January 1, 2020. On December 31, 2020, he received a $400 dividend and sold his stocks for $10,600.
That means that at the beginning of 2020 the investor had $10,000 and by the end of the year he had $11,000. To calculate the return of investment (ROI) we do the following:
ROI = [ ( $11,000 / $10,000 ) - 1 ] x 100 = 10%
Answer:
1. $20,000 cost already incurred to a produce. - Irrelevant
This cost has already been incurred in the initial production and as such are classified as sunk costs. Sunk costs are not relevant to the decision on whether to sell or process the product further.
b. $12,000 selling price - Relevant
As this amount relates to the selling price were the product not to be processed further, it is relevant to the <em>sell or process the products further</em> decision.
c. $16,000 additional processing costs - Relevant
This is the incremental cost should the product be processed further and so is relevant to the decision.
d. $30,000 revenues from processing further. - Relevant.
As the total revenue that could be realized if the product is processed further, this is very relevant to the decision on whether to process further or sell.