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BlackZzzverrR [31]
3 years ago
11

ring its first five years of operations, Della Manufacturing reports net income and pays dividends as follows. Year Net Income D

ividends 1 $ 2,000 $ 1,700 2 2,600 1,600 3 2,600 2,200 4 5,900 2,900 5 8,800 3,100 Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1.
Business
1 answer:
miv72 [106K]3 years ago
3 0

Answer: See explanation

Explanation:

The retained earnings will be calculated as:

= Begining retainers earnings + Net income - Dividend.

Year 1:

Retained earning = 0 + 2000 - 1700

= 300.

Year 2:

Retained earning = 300 + 2600 - 1600

= 1300

Year 3:

Retained earning = 1300 + 2600 - 2200

= 1700

Year 4:

Retained earning = 1700 + 5900 - 2900

= 4700

Year 5:

Retained earning = 4700 + 8800 - 3100

= 10400

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Cr Pension Liability        $57,400

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Dr Plan Asset $25,700

Cr Actual return $25,700

4. Contributions made increases the Plan Asset because it is an increase in the investment.

So the journal entry would be:

Dr Plan Asset $20,000

Cr Cash Asset        $20,000

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So the double entry would be:

Dr Pension Liability $17,700

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Kindly input the above values in the following worksheet:

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Monetary policy theory says that when the economy is faced with inflation, the government should
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Ms. Pear owned 1,000 shares of YZ Corporation which she had purchased in Year 1 at a cost of $12 per share. In Year 3, she recei
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Answer:

$2,000

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7 0
3 years ago
A company issued 6%, 10-year bonds with a face amount of $90 million. The market yield for bonds of similar risk and maturity is
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Answer:

The bonds sold at: $122,106,600 dollars

Explanation:

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time 20  10 years and 2 payment per year

discounted at market rate: 7% divide by 2 payment per year:  0.035

2.7 \times \frac{1-(1+0.035)^{-20} }{0.035} = PV\\

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Then present value of maturity:

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time            10 years

rate             0.07

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PV maturity  $45.7514

Total  $122.1066

7 0
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