Answer:
Date - December 14, 2020
Debit : Dividend $16,000
Credit : Shareholders for dividends $16,000
Date - January 16, 2021
Debit : Shareholders for dividends $16,000
Credit : Cash $16,000
Date - December 12, 2021
Debit : Dividend $62,000
Credit : Shareholders for dividends $62,000
January 15, 2022
Debit : Shareholders for dividends $62,000
Credit : Cash $62,000
Explanation:
Dividends are initially declared before they are paid to the respective shareholders. So it is important to first record the journal at the <em>declaration date</em> of the dividend, then the <em>payment date</em> of the dividend as shown above.
Answer:
We need to know if the price level is changing or not.
Explanation:
If the economy is at the potential output and the quantity of aggregate output supplied increases, we need to know if this increase is because of an increase in the price level.
If the aggregate price level is increasing then there will be a movement on the SRAS curve. If the increase in quantity supplied is because of a rightward shift in the LRAS curve, the price level will remain the same.
Also, if the quantity supplied goes back to its original level, in the long run, it implies that the increase in output was because of a short run movement.
<span>agreement to modify an existing contract </span>
