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.
C. May 2 Equipment—Store 3,500.00
Just took the test
Answer:
$1,389,375
Explanation:
Data provided as per the question:-
Product per unit = $195
Current sales = 42,300 units
Break-even sales = 35,175 units
The computation of margin of safety in dollars is shown below:-
Margin of safety (in units) = Total sales - Break-even sales
= 42,300 - 35,175
=7,125 units
Margin of safety (in dollars) = Margin of safety × Product per unit
=(7,125 × $195)
= $1,389,375
If terrorism ended and the world’s nations unilaterally disarmed and adopted free trade policies, Bond prices would drop rapidly which means there would be no more wars. Bond prices would fall straight down at high speed. If there were no more wars, the Government wouldn't need to buy weapons, then it wouldn't need to sell bonds to raise the money to pay for them. Thus, the value of bonds would diminish.
Answer:
1. $470
2. $470
3. $70
Explanation:
Accounting costs or explicit cost are the actually costs incurred in running the business. They include :
1. $240 for wages
2. $150 for materials
3. $80 for equipment rental.
Total = $470
Implicit costs are opportunity cost. They are the costs of the next best option forgone when one alternative is chosen over other alternatives. The amount that could have been earned as rent is the implicit cost. So implicit cost is $70
I hope my answer helps you
