Answer:
correct option is a. decrease by $80,000
Explanation:
given data
stock dividend = 10%
common stock = $5
Chief = 80,000 shares
market value = $10
to find out
Chief's retained earnings will
solution
here retaining earning will be decrease by the maount of stock dividend that is
retaining earning = $80,000 × 10 % × $10
retaining earning = $80,000 × 0.10 × $10
retaining earning = $80000
so here correct option is a. decrease by $80,000
Answer:TRUE
Explanation: Standard deviation is the rate of spread of numbers or values around the Mean of the numbers or values, it can also be described as the square root of the variance of a set of numbers or values. In financial analysis, the rate of return is the amount net income of a business entity over a given period of time. A risk averse investor is an investor who will try as much as possible to avoid risk even with high profit investment.
So for a risk average person to take on the investment with higher standard deviation it means the rate of return will be Higher.
Answer:
$400 favorable
Explanation:
The computation of the volume variance is shown below:
Fixed overhead Volume Variance = Actual Overheads - Budgeted Overheads
where,
Actual overhead is
= 5,200 units × 2 hours × $1
= $10,400
And, the budgeted overhead is
= 5,000 units × 2 hours × $1
= $10,000
So, the volume variance is
= $10,400 - $10,000
= $400 favorable
We simply deduct the budgeted cost from the actual cost so that the difference could be come
Answer:
a) $700 debit to Depreciation Expense and a $700 credit to Accumulated Depreciation.
Explanation:
The adjusting journal entry is shown below:
On December 31
Depreciation expense $700
To Accumulated depreciation - Machine A/c $700
(Being the depreciation expense is recorded)
The computation is shown below:
= Estimated annual depreciation on the machine × number of months ÷ total number of months in a year
= $1,680 × 5 months ÷ 12 months
= $700
