Answer:
Dr Retained earnings $9,000
Cr Dividends payable $9,000
Explanation:
The number of shares eligible for dividends is the issued common stock minus treasury stock, that is 15,000 shares(20,000-5,000),as a result ,dividends of $9000 (15,000*$0.6) were declared.
The appropriate entries on the declaration date is to debit retained earnings with $9,000 and credit dividends payable account with $9000
Upon payment, the dividends payable would be debited and cash account credited.
Answer:
A. They can be in electronic or paper form.
Answer:
Explanation:
M2-28. Computing and Comparing Income and Cash Flow MeasuresPenno Corporation recorded service revenues of $200,000 in 2020, of which $170,000 were on credit and $30,000 were for cash. Moreover, of the $170,000 credit sales for 2020, Penno collected $20,000 cash on those receivables before year‑end 2020. The company also paid $25,000 cash for 2020 wages. Its employees also earned another $15,000 in wages for 2020, which were not yet paid at year‑end 2020. (a) Compute the company’s net income for 2020; and (b) how much net cash inflow or outflow did the company generate in 2020? Explain why Penno’s net income and net cash flow differ.
Answer:
a. The inventory turnover is 8.00 times
b. The days’ sales in inventory is 68 days
Explanation:
a. In order to calculate the inventory turnover we would have to use the following formula:
inventory turnover=cost of goods sold/average inventory
inventory turnover=$ 48,800/($3,100+$ 9,100)/2
inventory turnover=8.00 times
b. In order to calculate thedays’ sales in inventory we would have to use the following formula:
days’ sales in inventory=(Ending invenory/cost of goods sold)*365
days’ sales in inventory=($9,100/$48,800)*365
days’ sales in inventory=68 days
Answer:
A. $6,400
B. $240
C. $1,000,000
D. $30,000
Explanation:
Requirement A, C, and D:
Prizes and awards are taxable income for a taxpayer. Any awards or prizes won from the lottery or television should be added to the income. Therefore, the Winning lottery is a taxable income for Kerry, $1,000,000. Again, Receiving the award for scientific research is also taxable income for Deborah, $30,000.
The winning award for accomplishments is also a taxable income. So, receiving a $6,400 worth gift bag is a taxable income for Cheline.
Requirement B:
There is an exception if the award is for tangible property and a long-years of accomplishment. At that time, the taxpayers will be excluded from some part of the necessary amounts to be paid as tax. If it is not a qualified award, the exclusion will be $400. If it is qualified, the tax exclusion is 1,600. Since Jon received a gold watch for 25 years of service and the gift is not qualified, he has to pay tax for $(660 - 400) = $240.
