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marshall27 [118]
3 years ago
8

Amazon Services, Inc. invests its excess cash in Nile Technologies, Inc. and acquires 6,000 shares for $62.00 per share. Amazon

Services, Inc. owns less than 2% of Nile's voting stock and plans to hold the stock for two years. While preparing the journal entry to record this transaction:_______.
A. Common Stock is debited for $372,000
B. An equity account is debited for $372,000
C. Equity Investments is debited for $372,000
D. Long-term Investments is credited for $372,000
Business
1 answer:
sergey [27]3 years ago
3 0

Answer:

Option B. Equity Investments is debited for $372,000

Explanation:

The initial journal entry to record the equity Investment will be treated same as purchase of an asset, which means the equity Investment account will be debited with the amount paid and the cash account will be credited with an equal balance.

Dr Equity Investments (6,000 * $62 per share) $372,000

Cr Cash Account                                                          $372,000

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The rise and the supply of labor in Skyville would decrease

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Do financial resources include which of the following helps businesses expand, pivot, or consolidate?
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that would be A. Loans

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7 0
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Wilt's has earnings per share of $2.98 and dividends per share of $0.35. What is the firm's sustainable rate of growth if its re
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Answer:

16.06%

Explanation:

According to the given situation the computation of sustainable rate of growth is shown below:-

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7 0
3 years ago
For the year ended December 31, a company had revenues of $187,000 and expenses of $109,000. $37,000 in dividends were paid duri
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Answer:

D) Debit income summary 187000, credit revenues 187000

Explanation:

When dividend is declared, following journal entry is passed

Retained Earnings                                    Dr.

    To Dividend Payable

(Being declared dividend recorded)

When dividends are actually paid, the journal entry is

Dividend Payable A/C                              Dr.

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Income summary shows net income balance i.e Revenue less expenses.

As per the given information in the question, debiting income summary account with total revenues of $187000 would be wrong.

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