Answer: the correct answer is a disclosure of $20,000
Explanation:
The annual preferred stock dividend is $15,000 = 3,000 x $100 x 5%. Total dividends in arrears at the end of 20X3 are therefore $20,000 = 2 years x $15,000 - $10,000 paid.
Dividends in arrears are footnoted only. They are not recognized as a liability until they are declared.
Answer:
(I)
retained earnings 92,400 debit
common stock 28,600 credit
additional paid-in 63,800 credit
(II)
retained earnings 924,000 debit
common stock 286,000 credit
additional paid-in 638,000 credit
(III) no entry required
Explanation:
22,000 x 10% = 2,200 new shares
market price:
2,200 X $42 = 92,400
book value
2,200 x $13 = 28,600
additional paid-in
63,800
100% sotkc dividends:
22,000 x 100% = 22,000 new shares
market price:
22,000 X $42 = 924,000
book value
22,000 x $13 = 286,000
additional paid-in
638,000
the stock split will not change the accounting as the total value fo the equity remains the same.
Answer:
See below
Explanation:
By making that purchase, the industry you paid to made a profit. Profit helps countries to increase their GDP, therefore the economy has grown.
