Answer:
a. To increase Land - Debit
b. To decrease Cash - Credit
c. To increase Fees Earned (Revenues) - Credit
d. To increase Office Expense - Debit
e. To decrease Unearned Revenue - Debit
f. To decrease Prepaid Rent - Credit
g. To increase Notes Payable - Credit
h. To decrease Accounts Receivable - Credit
i. To increase Common Stock - Credit
j. To increase Store Equipment - Debit
Explanation:
Debit gives details of spending, sum owed , amount to balance which is usually recorded to the left side of an account entry book while credit gives the details of income, amount earned or made on sale, spending cut and revenue and is usually placed to the right hand column of an account entry.
Answer:
Explanation:
Expenditure made to reduce costs; Expenditure made to increase revenue; Expenditure which is justified on non-economic grounds.
Answer:
$1.3794
Explanation:
The computation of the projected dividend for the coming year is shown below:
Last year dividend paid = Do
Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32
Dividend in Year 2 (D2) = Do ( 1+g)^2 = Do × 1.32^2
Dividend in Year 3 (D3) = Do ( 1+g)^3 = Do × 1.32^3
Dividend in year 4 , (D4) = D3 × (1+g) = Do × 1.32^3 × 1.22
Now the price at year 4 is
P4 = D4 × (1+g) ÷ ( R-g )
= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )
= Do × 100.08
Use Gordon Growth Model
The Current Price of Stock is
= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4
$78 = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)
$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )
Do = $1.045
Now
Projected Dividend for Year 1 is
= Do × 1.32
= $1.045 × 1.32
= $1.3794
