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Kingbird Company has the following stockholders’ equity accounts at December 31, 2017.Common Stock ($100 par value, authorized 8

viktelen [127]

Answer:

Journal Entries :

1.

Common Stocks $29,400 (debit)

Cash $29,400 (credit)

2.

Dividends Declared $174,300 (debit)

Shareholders for Dividends $174,300 (credit)

3.

Shareholders for Dividends $174,300 (debit)

Cash $174,300 (credit)

4.

Cash $30,600 (debit)

Common Stocks $30,600 (credit)

5.

Common Stocks $48,300 (debit)

Cash $48,300 (credit)

6.

Cash $29,100 (debit)

Common Stocks $29,100 (credit)

Explanation:

1.

Common Stocks $29,400 (debit)

Cash $29,400 (credit)

Purchase Cost = 300 shares × $98 = $29,400

2.

Dividends Declared $174,300 (debit)

Shareholders for Dividends $174,300 (credit)

Dividend Calculation = (8600 - 300) × $21 = $174,300

<em>Note : Recognize the Liability : Shareholders for Dividends and recognise the Equity Element : Dividends Declared</em>

3.

Shareholders for Dividends $174,300 (debit)

Cash $174,300 (credit)

<em>Note : De-recognize the Liability : Shareholders for Dividends and De -recognize the Assets of Cash.</em>

4.

Cash $30,600 (debit)

Common Stocks $30,600 (credit)

Proceeds = 300 shares × $102 = $30,600

5.

Common Stocks $48,300 (debit)

Cash $48,300 (credit)

Purchase Cost = 460 shares × $105 = $48,300

6.

Cash $29,100 (debit)

Common Stocks $29,100 (credit)

Proceeds = 300 shares × $97 = $29,100

5 0

3 years ago

If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages o

nikdorinn [45]

Answer:

c. A debit to Salaries Payable and a credit to Cash.

Explanation:

As on December 31, entry to record the expense of Salaries which is accrued and not paid is

Salary A/c Dr.

To Salaries Payable

Now on the closing date, of previous year there is a liability outstanding of Salary Payable.

In the next year on 5th January the salary outstanding in opening balance sheet is paid.

For this, the payment will be made and accordingly, cash will be reduced.

Accordingly liability will be reduced for this, liability will be debited.

Therefore, correct option is

c. A debit to Salaries Payable and a credit to Cash.

6 0

3 years ago

Protecting intellectual property rights can result in new inventions that help the economy to grow. True False

Nostrana [21]

True hope this answers this question

7 0

3 years ago

Read 2 more answers

What event had an enormous effect on US workplace safety?

ella [17]

It was a worker strike. Which lead to many strikes of the labor union. Because of this the Heath Act was formed. It went into effect April 28th, 1971.

7 0

2 years ago

Read 2 more answers

On January 2, 2017, the board of directors of Michael declared a 10% stock dividend to be distributed on February 15, 2017. The

frozen [14]

Answer:

the decrease in the value of the retained earning is $172,500

Explanation:

The computation of the decrease in the value of the retained earning is given below:

The dividend of the stock is

= (25,000 shares - 2,000 shares) × 10% × $75

= $172,500

Since there is the stock dividend of $172,500 so it ultimately reduced the retained earning account by $172,500

8 0

2 years ago