The answer is: <span>Jan. 7. Paid cash dividends of $0.18 per share on the common stock. The dividend had been properly recorded when declared on Nov 30 of the preceding fiscal year for $66,600. </span>
<span>Dr Common Dividends Payable 66,000 </span>
<span>Cr Cash 66,000 </span>
<span>Feb. 9. Issued 50,000 shares of common stock for $600,000 </span>
<span>Dr Cash 600,000 </span>
<span>Cr Common Stock 400,000 (50,000 x $8 par value) </span>
<span>Cr Additional Paid-In Capital 200,000 </span>
<span>May 21. Sold all of the treasury stock for $300,000 </span>
<span>Dr Cash 300,000 </span>
<span>Cr Common (Treasury) Stock 240,000 </span>
<span>Cr Additional Paid-In Capital 60,000 </span>
<span>July 1. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $13 per share. </span>
<span>400,000 - 30,000 + 50,000 + 30,000 = 450,000 shares outstanding </span>
<span>Dr Stock Dividends 234,000 (450,000 x 4% x $13 market price) </span>
<span>Cr Stock Dividends Distributable 144,000 (450,000 x 4% x 8 par value) </span>
<span>Cr Additional Paid-In Capital 90,000 (450,000 x 4% x 5 excess of par value) </span>
<span>Aug. 15. Issued the certificates for the dividend declared on July 1 </span>
<span>Dr Stock Dividends Distributable 144,000 </span>
<span>Cr Common Stock 144,000 </span>
<span>Sept. 30. Purchased 10,000 shares of treasury stock for $100,000. </span>
<span>Dr Common (Treasury) Stock 100,000 </span>
<span>Cr Cash 100,000 </span>
<span>Dec 27. Declared a $0.20-per-share dividend on common stock </span>
<span>400,000 - 30,000 + 50,000 + 30,000 +18,000 - 10,000 = 458,000 shares now outstanding </span>
<span>Dr Cash Dividends 91,600 (458,000 x $0.20) </span>
<span>Cr Common Dividends Payable 91,600 </span>
<span>31. Closed the credit balance of the income summary account, $485,000. </span>
<span>Dr Income Summary 485,000 </span>
<span>Cr Retained Earnings 485,000 </span>
<span>31. Closed the two dividends accounts to Retained Earnings. </span>
<span>Dr Retained Earnings 234,000 </span>
<span>Cr Stock Dividends 234,000 </span>
<span>Dr Retained Earnings 91,000 </span>
<span>Cr Cash Dividends 91,000 </span>
<span>3) </span>
<span>7,100,000 Beginning balance </span>
<span>+ 485,000 </span>
<span>- 234.000 </span>
<span>- 91,000 </span>
<span>= 7,260,000 Ending balance </span>
<span>4) </span>
<span>3,824,000 Common Stock (468,000 x 8) </span>
<span>+ 950,000 Additional Paid-In Capital (600,000 + 200,000 + 60,000 + 90,000) </span>
<span>+ 7,260,000 Retained Earnings </span>
<span>- 100,000 Treasury Stock </span>
<span>= 11,934,000 Total Stockholders' Equity</span>
Answer:
2016 Balance Sheet
$169,000 Cash
$109,000 Investment in Common Stock
$219,000 Accounts Receivable
$244,000 Inventory
$44,000 Prepaid Insurances
$785,000 TOTAL CURRENT ASSETS
$990,000 Land
$690,000 Machinery and Equipment
-$219,000 Accum Depreciation
$1,690,000 Buildings
-$619,000 Accum Depreciation
$129,000 Patents
$269,000 Restricted Cash
$109,000 Copyright
$179,000 Investment in Common Stock
$3,218,000 TOTAL NONCURRENT ASSETS
$4,003,000 TOTAL ASSETS
$119,000 Accounts Payable
$79,000 Taxes Payable
$169,000 Notes Payable
$367,000 TOTAL CURRENT LIABILITIES
$587,000 Bonds Payable 2021
$109,000 Notes Payable
$696,000 TOTAL NONCURRENT LIABILITIES
$1,063,000 TOTAL LIABILITIES
$1,950,000 Common Stock
$990,000 Retained Earnings
$2,940,000 TOTAL EQUITY
$4,003,000 TOTAL EQUITY + LIABILITIES
Explanation:
- Account of Current Assets , the criteria is to have a liquidity speed less than one year
Cash
Investment in Common Stock
Accounts Receivable
Inventory
Prepaid Insurances
- Account of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets
Land
Machinery and Equipment
Accum Depreciation
Buildings
Accum Depreciation
Patents
Restricted Cash
Copyright
Investment in Common Stock
- Account of Current Liabilities , the criteria is to have a liquidity speed less of one year
Accounts Payable
Taxes Payable
Notes Payable
- Account of Non Current Liabilities, the criteria is to have a liquidity speed more than one year and are known as long term financing
Bonds Payable 2021
Notes Payable
Common Stock
Retained Earnings
Liquidity is defined as the speed of the assets that will be converted into cash, Assets that take less days to buy or sell are more liquid than others.
Cash is the most liquid asset, then Accounts Receivable and Inventories for the end, in the middle there are different assets such as capital investments.
Prepaid expenses are not liquid because these accounts do not mean that the company can get cash unless the company has rights to something.
Answer:
Dissimilar mental model
Explanation:
Communication is simply the interaction with two or more people. It is the passing of information. It involves the transfer and understanding of meaning. In communication, members of the organization shows their satisfaction and frustrations.
mental models simply represent a described or support comprehension as it keep info about the current situation available in memory. It guide behavior and allow prediction.
Answer:
Loan amount = $184,193.95
Explanation:
Interest will remain same each year. Interest per year = 200,000*10% = $20,000
Installment $21,215.85
Less: Interest <u>$20,000</u>
Payment to Principal <u>$1,215.85</u>
Total principal repaid in 13 years = $1,215.85 * 13 years = $15,806.05
So, the principal left = $200,000 - $15,806.05 = $184,193.95
Answer:
C) In today's dollars, Chang Lee's money is worth more than Soo Lee's
Explanation:
The present value of receipts 6 year hence of amount $20,000 discounted at 7% rate would be: Discounting factor of 1 $ for 6 years at 7 % i.e expressed as:
= 20,000 × 0.6663
= $ 13,327 approx
The present value of $20,000 receipts 9 years hence discounted at 7% rate is given by:
= 20,000 × 0.5439
= 10,879 approx.
As is evident from above, Chang Lee's present value of receipts is more than those of Soo Lee's.
