Answer:
The net journal entry impact on company's retained earnings is $1400,000 credit.
Explanation:
When the dividends were declared on December 15,the following entries apply:
Dr Dividends $1600000
Cr Dividends payable $1600000
However,upon closing the dividends to retained earnings the below journal entries apply:
Dr Retained earnings $1600000
Cr Dividends $1600000
It is noteworthy that the stock-split does not impact the dividends or retained earnings of $3m in anyway.
Since,journal entries for temporary accounts are closed to retained earnings,invariably the net income of $3m in year 2 must also be shown in retained earnings using journal.
Dr Income statement $3000000
Cr Retained earnings $3000000
From the above,a debit of $1600000 and credit entry of $3000000 in retained earnings gives a credit balance of $1400000
Let us assume that the company Taylor Industries bought merchandise from X company. Taylor Industries will record Accounts Payable while X company will record Accounts Receivable.
Since Taylor Industries will no longer be able to pay off its Account Receivable, X company will have to write off the Accounts Receivable. Writing off Accounts Receivable can be done in two ways.
1) Allowance method:
Bad Debt Expense xxxxx
Allowance for Doubtful accounts xxxxx
Writing Off Bad Debt:
Allowance for Doubtful Accounts xxxxx
Accounts Receivable xxxxx
2) Direct Write-off method.
Bad Debt Expense xxxxx
Accounts Receivable xxxxx
In the books of Taylor Industries, it must recognize the cancellation of the Accounts Payable from the transaction with X company.
Accounts Payable xxxxx
Other Income xxxxx
Answer:
The gain of $8,000 is recognized and the bonds have a basis of $35,000
Explanation:
Please see attachment
One significant difference between the beginning of the great depression and the economic fallout of the covid-19 epidemic in 2020 is great depression is caused by the collapse of the stock market whereas the economic fallout during the pandemic is caused by the shutdown of industries due to lockdown.
<h3>What was the Great depression?</h3>
The Great depression referred to the economic downfall that caused to collapse of the stock market in 1929 due to which the economic stability of the United States become poor and a huge crisis was faced.
The production was halted and a lockdown was established as a result of the widespread diseases, which made the economy worse because there was still consumption but no longer have any economic stability.
Learn more about the great depression, here:
brainly.com/question/7998129
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<span>Represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income.
the formula is y=Pb B + Pw W
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Hope that helped!
