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.
<span>The mass production of automobiles in the United States during the 1920's affected our economy, because it made technology affordable to the middle class.</span>
Answer:
The correct answer is (B)
Explanation:
Economics is a study of the market and human behaviour. Economists usually use historical data, conduct interviews and surveys to find a pattern to predict and forecast. In economics, it is almost impractical to conduct laboratory experiments because laboratory experiments leave out various aspects of reality and leave out relevant variables. Furthermore, It is difficult to find a way to use a laboratory experiment to predict and forecast.
Answer:
a) EOQ = 36 units
b) Average Inventory=18 units
c) No of orders per year= 135 times
d) Ordering cost ($540 ) = Carrying cost ($540)
Explanation:
The economic order quantity is the order size that minimizes the the balance of holding cost and ordering cost.
It is calculated using the formula below:
a) EOQ = √ 2×Co×D/Ch
Co- 4, Ch- 30 - D - 4, 860
EOQ = √ 2×4×4,860/30
= 36 units
b) Average Inventory = EOQ /2
= 36/2 = 18 units
c) No of orders per year = Annual demand/ EOQ
=4,860/36 = 135 times
d) At the EOQ, the holding cost = Ordering cost
Holding cost = holding cost per unit × Average inventory
= $30× 18 = $540
Annual ordering cost = ordering cost per unit × No of orders
= $4 × 135 = $540
Ordering cost ($540 ) = Carrying cost ($540)