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3 years ago

6

On March 15, American Eagle declares a quarterly cash dividend of $0.105 per share payable on April 13 to all stockholders of re

cord on March 30. Required: Record American Eagle's declaration and payment of cash dividends for its 214 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in dollars, not in millions (i.e. $5.5 should be entered as 5,500,000).)

1 answer:

rodikova [14]3 years ago

7 0

Answer:

March 15 Debit Credit

Dividends $22,470,000

Dividends Payable $22,470,000

March 30 No entry

April 13

Dividends Payable $22,470,000

Cash $22,470,000

Explanation:

In order to record American Eagle's declaration and payment of cash dividends for its 214 million shares first we would require to calculate the dividends as follows:

Dividends=214,000,000 shares*$0.105

Dividends=$22,470,000

Therefore, the journal entries would be the following:

March 15 Debit Credit

Dividends $22,470,000

Dividends Payable $22,470,000

March 30 No entry

April 13

Dividends Payable $22,470,000

Cash $22,470,000

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Answer and explanation:

<em>Check the attached file for a well formatted answer</em>

1 December 1, 2017 entry in Debt service fund

Expenditure-Bond Interest $137,500

Cash $137,500

Semiannual interest rate = 5.5%/2 = 2.75%

Interest = $5 million x 2.75% = $137500

2 December 1, 2017 entry in government wide level

Expenses-Interest on long term debt $137,500

Cash $137,500

3 December 31, 2017 entry in the government-wide level

Expenses-Interest on long term debt $22,917

Accrued Interest payable $22,917

1 month accrued interest on bond = ($5 million x 5.5%)/12 =$22917

4 June 1, 2018 entry in Debt service fund

Expenditure-Bond principal $500,000

Expenditure-Bond interest $137,500

Cash $637,500

Cash $637,500

Due from General fund $637,500

5 June 1, 2018 entry in government-wide level

Expenses-Interest on long term debt $137,500

Serial Bonds Payable $500,000

Cash $637,500

6 December 1, 2018 entry in Debt service fund

Expenditure-Bond Interest $123,750

Cash $123,750

Semiannual interest rate = 5.5%/2 = 2.75%

Interest = $4.5 million x 2.75% = $123750

7 December 1, 2018 entry in government wide level

Expenses-Interest on long term debt $123,750

Cash $123,750

8 December 31, 2018 entry in the government-wide level

Expenses-Interest on long term debt $20,625

Accrued Interest payable $20,625

1 month accrued interest on bond = ($4.5 million x 5.5%)/12 =$20625

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3 years ago

Straight-line depreciation is the simplest depreciation method because it assumes assets lose value evenly throughout their live

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Answer:

Straight-Line Depreciation Method:

A five-year asset purchased for $100,000 with an expected residual value of $10,000 has an annual depreciation expense of 0.2 x ($100,000- $10,000)__$18,000_______ ' After each year, the depreciation expense reduces the depreciable basis (for example, after the first year, the depreciable basis is__$72,000____

Explanation:

a) Data and Calculations:

Asset's acquisition cost = $100,000

Residual value = $10,000

Useful life = 5 years

Depreciation rate = 20% (100/5)

Depreciable amount or basis = $90,000 ($100,000 - $10,000)

Depreciation expense for 1st year = 0.2 x ($100,000- $10,000) = $18,000

Depreciation basis after 1st year = $72,000 ($100,000 - $10,000 - $18,000)

b) The depreciation basis of a tangible long-term asset is the amount of the asset's cost that can be depreciated over its useful life. This amount is the acquisition cost of an asset, minus its estimated salvage value at the end of its useful life.

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3 years ago

The country of Micronesia is currently experiencing a recessionary gap. The size of the recessionary gap is $500 billion. If the

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Answer:

The appropriate solution is "100 billion".

Explanation:

The given values are:

Recessionary gap (Total change),

= $500

Marginal propensity consume (MPC),

= 0.8

Now,

Multiplier will be:

= $\frac{1}{1-MPC}$

On putting the value of MPC, we get

= $\frac{1}{1-0.8}$

= $5$

As we know,

⇒ $Total \ change=Government \ spending's \ increase\times Multiplier$

⇒ $Government \ spending's \ increase=\frac{Total \ change}{Multiplier}$

On substituting the values, we get

⇒ $=\frac{500}{5}$

⇒ $=100 \ billion$

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Answer:

$226,000

Explanation:

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=0.35 x 671,000

=234,000

cost of goods sold = revenue - gross profit

=$671,100 - $234,000

=$437, 000

cost of goods sold = opening inventory + purchases- ending inventory

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=$437,000= $663,409- ending inventory.

Ending inventory = $663,409 - $437,000

=$226,000

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