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guapka [62]
3 years ago
5

The board of directors of Blue Spruce Corp. declared a cash dividend of $2 per share on 42000 shares of common stock on July 15,

2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The correct entry to be recorded on August 15, 2017, will include a _________.
Business
1 answer:
lyudmila [28]3 years ago
3 0

Answer:

Dr Dividends payable ($2*42000) $84000

Cr Cash                                                          $84000

Explanation:

Initially,on July 15 2017, the necessary entries would be to debit retained earnings and credit dividends payable with $84000 to show that the company owes the shareholders dividends.

On the payment date, the entries would to debit dividends payable and to record outflow of cash used in making the dividends payment,hence cash or bank account is credited as a decrease in cash and corresponding entry posted to dividends payable.

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Baine lived in Bristol Harbor, a resort area on the Atlantic coast. She entered into a written agreement to sell her daily catch
morpeh [17]

<u>Solution and Explanation:</u>

A court assumes that the written cntarct is the begining and the end of all the terms of the agreement and will not acept the parol evidence if it changes the meaning of the terms of contract.

Parol evidence should only be used to determine the inetntions of the parties at the time the contract was made, not after the fact.

Valid contract: The elemenst of  valid contract must be seen.

Since Mrs B signed a contract with the specific terms that did not include a bonus, a court would not consider an oral agreement based on completing a yet to be written contract under the parol evidence rule.

hence, Mrs B cannot introduce the oral agreement under the parol evidence rule.

5 0
3 years ago
As indicated in the chapter, return on investment (ROI) is well entrenched in business practice. However, its use can have negat
Juliette [100K]

Answer:

ROI = net profit / total investment

1. What is the current return on investment (ROI) being realized by your division

  • ROI = $625,000 / $4,150,000 =  15.06%

2. What would happen to the near-term ROI of your division after adding the effect of the new investment?

  • ROI = ($625,000 + $50,000) / ($4,150,000 + $550,000) =  14.36%

If you carry out the new project the ROI of your division will decrease.

3. As manager of this division, given your incentive compensation plan, would you be motivated to make the new investment?

  • Even though the new project's return (9.1%) is considered acceptable by upper management, you will probably reject it since it will decrease your division's total ROI. When managers are assigned bonuses based on certain achievements, reducing your profitability ratio will probably result in no bonus.
6 0
3 years ago
How many people make 1 million per year in the world
Dmitry [639]
I think it’s around 18 million or more people that make more than 1 million or 1 million yearly
8 0
3 years ago
If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to _____
snow_tiger [21]

Answer: The correct option is "c.exercising an in-the-money put option".

Explanation: If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to <u>exercising an in-the-money put option</u> on the assets of the firm.

because he would be paying the debt with the participation in the equity of the company.

3 0
3 years ago
investment is made at r percent compounded annually, at the end of n years it will have grown to A = P(1 + r)n . An investment m
bixtya [17]

Answer:

$1,500

Explanation:

Given the compounding formula A = P(1+r)^{n}

And given an investment (P), made at 16% compounded annually (r), and an ending amount of $1,740 (A) at the end of the year (n = 1 year), the original amount invested (P) can be computed as follows.

1,740 = P(1+0.16)^{1}

1,740 = P * 1.16

= P = 1,740/1.16 = 1,500.

Therefore, the original investment was $1,500.

3 0
3 years ago
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