Answer:
The Journal entries are as follows:
(i) On October 1, 2014
Retained Earnings A/c Dr. $7,350,000,000
To Dividend Payable $7,350,000,000
(To record declaration of dividend on outstanding shares)
Workings:
Dividend Payable = Outstanding shares × Dividend per share
= 3 billion × $2.45
= $7.35 billion
(ii) On October 15, 2014
No Entry
(iii) On October 20, 2014
Dividend Payable A/c Dr. $7,350,000,000
To cash $7,350,000,000
(To record payment of dividend)
Answer:
Balance sheet:
Accounts receivable
Cash
Common stock
Land
Supplies
Wages payable
Income statement:
Fees earned
Supplies expense
Utilities expense
Wages expense
Explanation:
Accounts receivable, cash, land, and supplies are assets while wages payable is a liability while common stock is owner's equity, all of which are balance sheet items.
Besides, fees earned are a revenue item while utilities , suplplies and wages expenses would appear in the income statement.
I think the correct answer for this would be enchancement
C. Taking your competition seriously.
