Answer:
The debit to the retained earning should be $750,000 for this transaction because that is the market value of the asset to be distributed as dividend.
Explanation:
Property dividend is a form of dividend payout that involves distribution of company`s assets to equity holders as a form of return. These assets can be inventory, marketable securities or investment in a subsidiary.
For this distribution to be formal, it must be approved by the board of directors of the company. After approved and declared, the accounting entries can now be passed.
The accounting entries needed are:
Debit: Retained Earnings with the amount of the asset distributed.
Credit: Dividend Payable with the amount of the asset distributed.
It is important to note that the market value of asset to be distributed should be considered i.e the market value of the asset must be recognized in the book. The difference in book value and market value of the investment will be recognized in respective asset ledger account prior transfer to retained earnings.So that the market value of the investment is recognized on the debit side of retained earnings
In the case of Fitzgerald, $750,000 will be debited to retained earnings since it is the market value of the asset to be distributed.
Answer:
There is loss of $900 on investment.
Explanation:
The purchase of 1 MMM July 129 call contract at premium = $21
Since it is given that it is held unit the expiration date.
The selling price of MMM stock = $141 per share.
Total number of shares = 100
Total amount paid for share (purchase price) = 129 + 21 = $150
Loss or profit = Market price on expiration date- purchase price
=141-150
= - 9
Total loss = 9 × 100
=900 loss
Answer:
The change in money supply amounts to $7,084,248
Explanation:
Computing the change in money supply as:
Using the multiplier as:
Multiplier = 1 / Required reserve ratio
where
Required reserve ratio is 0.220
So,
Multiplier = 1 / 0.220
Multiplier = 4.54
So, the new money supply would be:
= Multiplier × Old money supply
where
old money supply is $2,001,200
Multiplier is 4.54
So,
= 4.54 × $2,001,200
= $9,085,448
Therefore, change in money supply is:
Change in money supply = $ 9,085,4448 - $2,001,200
Change in money supply = $7,084,248
There are no options to choose from. Julie will get paid that fee of customers bias. (if that makes sense). Hope this helps!
