Answer:
Option D is the correct answer,$ 88,338.48
Explanation:
The liability reported in the balance sheet can be computed by using the pv formula in excel which is stated thus:
=-pv(rate,nper,pmt,fv)
rate is the incremental borrowing rate of 11% per year
nper is the number of payments required to settle the obligation which is 10
pmt is the amount of yearly payment in order to fully settle the debt owed which is $15,000 per year
fv is the future worth of total payments which is not unknown,hence taken as zero
=-pv(11%,10,15000,0)=$ 88,338.48
The correct answer is $ 88,338.48
2. Significant fluctuations in the market would actually be corrected
Answer:
On November 27
Debit Retained earnings $12,750
Credit Dividend payable $12,750
<em>(To record the dividend declared)</em>
On December 24
Debit Dividend payable $12,750
Credit Cash $12,750
<em>(To record dividend paid) </em>
Explanation:
- Dividends on gains on shares bought by the shareholders. They arise due to appreciation in share price and improvement in company's net income.
- The dividend payable was calculated as $.5 x 25,500 shares = $12,750.
- Dividends are usually paid out of retained earnings.
- The dividend payable account is debited when payment is to be made.
Answer: why do you hate this person so much
Explanation:
Answer:
Entry's
Debit Credit
Retained earnings 100,000
Dividend payable 100,000
Explanation:
Because the dividend is declared in July but not paid in July the entry in July will be of dividend payable and not cash, dividend payable will be credited as it is a liability which is increasing and we credit when a liability increases. Secondly we will debit retained earnings because the dividends will be paid from the retained earnings and whenever retained earnings decrease we debit them. We calculate the amount by multiplying the number of shares by the dividend per share (50,000*2) = 100,000
