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Hitman42 [59]
3 years ago
12

The Groom company has 50,000 shares of $10 par value common stock outstanding when it declares a dividend of $1 per share. What

would be the journal entry for the declaration of the cash dividends? Select one:
a. Debit: Dividends Payable - Common Stock 50,000 Credit: Cash 50,000
b. Debit: Cash Dividends 50,000 Credit: Dividends Payable - Common Stock 50,000
c. Debit: Cash 50,000 Credit: Cash Dividends 50,000
d. Debit: Cash Dividends 50,000 Credit: Cash 50,000
Business
1 answer:
laiz [17]3 years ago
3 0

Answer:

B) Debit: Cash Dividends 50,000 Credit: Dividends Payable - Common Stock 50,000

Explanation:

At the time of declaration of dividends the proper journal entry should be:

  • Dr Retained Earnings 50,000
  • Cr Dividends Payable - Common Stock 50,000

You can use the Cash Dividends account, which is a temporary account, although it's not the best option. This account is used only when companies have not been making a profit before (retained earnings = 0), or for new companies.  

Since no payment is done, the cash account is not affected (eliminating options A, C and D).

Dividends Payable is a liability account and since it increases, it should be debited.

Cash Dividends is a temporary equity account that is debited once the company declares the dividend distribution.

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The stock went down 4.8%

Rate of Change of a stock is (New price - old price/ old price) *100

5.95-6.25 / 6.25 * 100

-.3/6.25 *100

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8 0
3 years ago
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Answer:

In the description section underneath the overview per the particular context is illustrated.

Explanation:

  • Wanda's philosophy about becoming a distributer of enhance performance resulted in increased market demand due to consumer perception that her goods are stronger and therefore more advantageous.
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Throughout this situation, Wanda might answer by genuinely changing the productivity of the latter's goods including displaying a certain clinical significance to obtain a competitive advantage for customers.

7 0
2 years ago
Wildhorse Co. uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows:
OLEGan [10]

Answer:

Ending inventory=  $1514

Explanation:

Giving the following information:

Beginning inventory: 320u*$5.00= $1600

Purchase, (1/15/2017)= 160u*5.70= $912

Purchase, (1/28/2017)= 160u*5.90= $944

Ending inventory= 260u

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6 0
3 years ago
Andrew’s coworkers often come to him for information about how their company handled disgruntled customers in the past since he
My name is Ann [436]

Answer:

option d is right

Explanation:

given that Andrew’s coworkers often come to him for information about how their company handled disgruntled customers in the past since he has worked at the company for 25 years.

He heard lots of information about the way things have been handled in the past, which helped him understand the organizational system.

Andrew’s information is an example of __Cultural____ knowledge.

This is because he knows some cultural characteristics, belief, history, and also behaviours due to his vast experience of 25 years and he shares with others.\

It is not explicit because not written and source is not mentioned

It is not descriptive, because data is not supported for his verdict.

It is not vigilant, because vigilant information is parted only to prevent frauds, or any illegal or unwarranted activity or behaviour.

Hence option d is right

3 0
3 years ago
When the demand curve shifts to the left and all else is held constant, the equilibrium price ________ and the equilibrium quant
rewona [7]

When the demand curve shifts to the left and all else is held constant, the equilibrium price <u>falls</u> and the equilibrium quantity <u>falls</u>.

<h3>The types of chart.</h3>

In Economics, there are two main types of chart that can be used to illustrate the relationship between the total quantity of goods or services that are demanded by consumers and the total quantity of goods or services that were supplied by a manufacturer (producer) at a particular price and these include the following:

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<h3>What is an equilibrium?</h3>

An equilibrium can be defined as the point on a supply and demand chart where the demand curve and the supply curve intersect.

In conclusion, the equilibrium price and the equilibrium quantity would <u>fall</u> when the demand curve shifts to the left and all else is held constant.

Read more on equilibrium here: brainly.com/question/2000166

#SPJ1

6 0
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