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elixir [45]
2 years ago
14

On January 1, 2015, VITO Corporation had 110,000 shares of its $5 par value common stock outstanding. On June 1, the corporation

acquired 10,000 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $10, the corporation declared a 20% stock dividend to be issued to stockholders of record on December 20, 2015. What was the impact of the 20% stock dividend on the balance of the retained earnings account
Business
1 answer:
rosijanka [135]2 years ago
5 0

Answer:

the impact is $200,000 decrease

Explanation:

The computation of the impact is as follows

= (Total shares - treasury stock) × market price of the stock × dividend percentage

= (110,000 shares - 10,000 shares) × $10 × 20%

= $200,000 decrease

hence, the impact is $200,000 decrease

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Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance
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Answer:

1. Record each transaction in the journal. Explanations are not required.

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I used an excel spreadsheet to answer questions 2 and 3

4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.

In order to prepare a trial balance we must prepare an income statement first.

Service revenue $6,800

Salaries expense -$2,400

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<u>Utilities expense -$650 </u>

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  Theodore McMahon, Attorney

               Balance Sheet

<u>For the Month Ended April 30, 2018</u>

Assets:

Cash $23,400

Accounts receivable $1,000

Prepaid insurance $3,600

Office supplies $1,100

Furniture $1,300

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Building $150,000

Total assets: $210,400

Liabilities and Equity:

Accounts payable $1,950

Notes payable $140,000

Common stock $70,000

Retained earnings ($1,550)

Total liabilities and equity: $210,400

Download pdf
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
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2 years ago
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha
Veseljchak [2.6K]

Answer:

Proposal A: 5,455 units

Proposal B: 5,770 units

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Variable Costs = $11 / unit

Selling Price = $24 / unit

(P-VC)*n-FC = 0\\(24-11)*n-75,000 = 0\\n=5,769.2\ units

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