All categories

4 years ago

When does a corporation record an increase in Dividends Payable?

Business

1 answer:

Gnoma [55]4 years ago

4 0

Answer:

B. On the declaration date

Explanation:

Dividend payable are usually advised by management but must be ratified by the shareholders (usually in the annual general meeting) for such to be come recognizable in the books. The date of ratification is the declaration date

As such a corporation record an increase in Dividends Payable on the declaration date.

The right option is B. On the declaration date

You might be interested in

Why do companies frequently expand their business operations into other countries?

natta225 [31]

C ompanies frequently expand their business operations into other countries because it is cost effective. ... The demand for something in another country may be higher than the demand for something in your country as well so it would be good to sell it elsewhere.

4 0

3 years ago

Holland Auto Parts is considering a merger with Workman Car Parts. Workman's market-determined beta is 0.9, and the firm current

Minchanka [31]

Answer:

0.097 OR 9.7%

Explanation:

Cost of Equity using CAPM-

Re = Rf + Beta (Rpm)

where,

Rf = Risk free return = 6%,

Rpm = Risk premium = 4%,

Beta = 0.9

Therefore,

Re = .06 + .9 (.04)

= 9.6%

Unlevered cost of equity:

ReU = Wd × rd + We × re

where,

ReU = Unlevered cost of equity,

Wd = Debt = 20%

rd = cost of debt = 8%

We = equity = 80%

re = cost of equity = 9.6%

Therefore,

ReU = 0.20 × 8% + .80 × 9.6%

= 9.28%

Levered cost of Equity:

New Debt = 60%,

New Equity = 40%,

New rd = 9%

ReL = ReU + (ReU - rd) (D ÷ E)

= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)

= 0.097 OR 9.7%

6 0

3 years ago

If total assets = 200 and the company has long term debt = 30 and short term debt = 50, what is the shareholders equity?O 30 O 5

Paraphin [41]

Answer:

The shareholders equity is 120

Explanation:

Basing on accounting equation:

Total asset = Liabilities + Shareholders equity

Therefore:

Shareholders equity = Total asset - Liabilities = Total asset - (Short term debt + Long term debt)

The company has total assets of 200, long term debt of 30 and short term debt of 50.

Shareholders equity = 200 - (50 + 30) = 200 - 80 = 120

8 0

3 years ago

On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Ja

Marina86 [1]

Answer:

Required 1.

Jan 1

Cash $30,000 (debit)

Capital $30,000 (credit)

Jan 2

Rent Expense $2,450 (debit)

Cash $2,450 (credit)

Jan 3

Supplies $2,200 (debit)

Accounts Payable $2,200 (credit)

Jan 4

Accounts Payable $850 (debit)

Cash $850 (credit)

Jan 5

Cash $14,940 (debit)

Fees Earned $14,940 (credit)

Jan 6

Automobile Expenses $1,580 (debit)

Miscellaneous expenses $470 (debit)

Cash $2,050 (credit)

Jan 7

Salaries Expenses $2,000 (debit)

Cash $2,000 (debit)

Jan 8

Supplies Expense $1,100 (debit)

Supplies $1,100 (credit)

Jan 9

Capital $3,200 (debit)

Cash $3,200 (credit)

Required 2

Cash = $ 34,390 (debit)

Capital = $ 26,800 (credit)

Rent Expense $2,450 (debit)

Supplies = $ 1,100 (debit)

Accounts Payable = $ 1,350 (credit)

Fees Earned $14,940 (credit)

Automobile Expenses $1,580 (debit)

Miscellaneous expenses $470 (debit)

Salaries Expenses $2,000

Supplies Expense $1,100

Required 3.

Debit Credit

Cash $ 34,390

Capital $ 26,800

Rent Expense $2,450

Supplies $ 1,100

Accounts Payable $ 1,350

Fees Earned $14,940

Automobile Expenses $1,580

Miscellaneous expenses $470

Salaries Expenses $2,000

Supplies Expense $1,100

Totals $43,100 $43,100

Required 4.

a. Amount of total revenue recorded in the ledger = $14,940

b. Amount of total expenses recorded in the ledger = $7,600

c. Amount of net income for January = $7,340

Required 5.

Increased by $4,140

Explanation:

Calculation of T - Account Balances

Cash $30,000 - $2,450 - $850 + $14,940 - $2,050 - $2,000 - $3,200 = $ 34,390 (debit)

Capital $30,000 - $3,200 = $ 26,800 (credit)

Rent Expense $2,450 (debit)

Supplies $2,200 - $1,100 = $ 1,100 (debit)

Accounts Payable $2,200 - $850 = $ 1,350 (credit)

Fees Earned $14,940 (credit)

Automobile Expenses $1,580 (debit)

Miscellaneous expenses $470 (debit)

Salaries Expenses $2,000

Supplies Expense $1,100

Calculation of total expenses recorded in the ledger.

Rent Expense $2,450

Automobile Expenses $1,580

Miscellaneous expenses $470

Salaries Expenses $2,000

Supplies Expense $1,100

Total $7,600

Calculation of net income for January.

Sales Revenue $14,940

Less Expenses ( $7,600)

Net Income / (Loss) $7,340

Calculation of increase or decrease in owner’s equity for January.

Net Income / (Loss) $7,340

Less Drawings ($3,200)

Change $4,140

Therefore, Owners Equity Increased by $4,140

8 0

3 years ago

Hi, I was bored who wants talking to me

stellarik [79]

Answer:

Explanation:

i do

6 0

3 years ago

Read 2 more answers