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nikdorinn [45]
2 years ago
13

Identifying and Analyzing Financial Statement Effects of Cash Dividends Freid Corp. has outstanding 6,000 shares of $50 par valu

e, 6% preferred stock, and 40,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year-end, the company declares and pays the regular $3 per share cash dividend on preferred stock and a $2.20 per share cash dividend on common stock. a. Using the financial statement effects template, illustrate the effects of these two dividend payments.
Business
1 answer:
Neporo4naja [7]2 years ago
6 0

Answer:

Assets              =                Liabilities          +               Equity

cash (18,000)                       NA                          Retained earnigns (18,000)

cash (88,000)                      NA                          Retained earnigns (88,000)

Retained earnings is an equity account and any cash dividends paid either to preferred or common stock will decrease cash and retained earnings, remember that both sides must balance.

You might be interested in
History of Stock Exchange in India
fomenos

Answer:

The first organised stock exchange in India was started in 1875 at Bombay and it is stated to be the oldest in Asia. In 1894 the Ahmedabad Stock Exchange was started to facilitate dealings in the shares of textile mills there. The Calcutta stock exchange was started in 1908 to provide a market for shares of plantations and jute mills.

Then the madras stock exchange was started in 1920. At present there are 24 stock exchanges in the country, 21 of them being regional ones with allotted areas. Two others set up in the reform era, viz., the National Stock Exchange (NSE) and Over the Counter Exchange of India (OICEI), have mandate to have nation-wise trading.

They are located at Ahmedabad, Vadodara, Bangalore, Bhubaneswar, Mumbai, Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur’ Kanpur, Ludhiana, Chennai Mangalore, Meerut, Patna, Pune, Rajkot.

The Stock Exchanges are being administered by their governing boards and executive chiefs. Policies relating to their regulation and control are laid down by the Ministry of Finance. Government also Constituted Securities and Exchange Board of India (SEBI) in April 1988 for orderly development and regulation of securities industry and stock exchanges.

5 0
2 years ago
Listed below are several transactions. For each transaction, indicate whether the ca financing, or noncash activity. Also, indic
mariarad [96]

Answer:

1. <u>Operating and Cash outflow:</u> Payment of employee salaries.

2. Investing and Cash inflow: Sale of land for cash. Investing

3. Operating and Cash outflow: Purchase of rent in advance.

4. Operating and Cash inflow: Collection of an account receivable.

5. Financing and Cash inflow: Issuance of common stock.

6. Operating and Cash outflow: Purchase of inventory

7. Investing and Cash inflow: Collection of notes receivable.

8. Operating and Cash outflow: Payment of income taxes.

9. Noncash activity, so no effect: Sale of equipment for a note receivable.

10. Financing and Cash inflow: Issuance of bonds.

11. Investing and Cash outflow: Loan to another firm.

12. Financing and Cash outflow: Payment of a long-term note payable.

13. Financing and Cash outflow: Purchase of treasury stock.

14. Operating and Cash outflow: Payment of an account payable.

15. Investing and Cash inflow: Sale of equipment for cash.

Explanation:

A statement of cash flow is a financial statement that gives the aggregate cash inflow and cash outflow in an organization during an accounting period. The three categories of statement of cash flows are investing activities, financing activities, and operating activities.

1. Investing activities are essentially the cash activities with respect to non-current assets such as sale of equipment for cash.

2. Financing activities refers to cash activities with respect to owners’ equity and non-current liabilities such as purchase of treasury stock.

3. Operating activities are mainly the cash activities with respect to net income such as payment of employee salaries.

8 0
2 years ago
A(n) ________ has no barriers to trade among member countries, includes a common external trade policy, and allows factors of pr
EleoNora [17]

Answer:

A common market

Explanation:

A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.

A monetary union has all the features of a common market and participating countries have a common currency.

I hope my answer helps you.

6 0
2 years ago
In​ particular, the author describes inefficient land allocation as a market failure because the market results in a quantity of
Katyanochek1 [597]
This came from Microeconomics 4th Edition where it cited Jun Jie Wu an economist made his observations and published it in an agricultural magazine known as <em>Choices. </em>He described market failure and inefficient land allocation as both economic terms in an urban development that did not meet expected growth creating an unbalance situation between the consumers and producers.

Market failure is a used term to describe that the producer was not able to produce the right products or the customers aren't able to buy enough products that would make the business profitable or good for both. Inefficient land allocation can add up to reasons of having market failures when it makes the business release more expenses than profit.
3 0
3 years ago
On July 15, 2015, Coolidge Company paid its 30-day, 10 percent, $600 note payable to Ross Company. Prepare the July 15 journal e
steposvetlana [31]

Answer:

Dr Notes Payable account 600

Dr Interest Expense account 5

Cr Cash account 605

Explanation:

The total interest due = $600 x 10% x 1/12 =$5

Notes payable is a liability account and it decreases, so it should be debited.

All expenses are debited.

Cash is an asset account and it decreases, so it should be credited.

3 0
2 years ago
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