Answer: D. The assets decrease and equity decreases.
Explanation:
If you look at the Accounting entries for Dividends you will notice thus,
a) the Cash account is credited because the dividends are removed from it. As you probably know, when an asset decreases it is credited. This therefore means that Assets have reduced because Cash is an Asset.
b) Dividends are debited to the Equity Section of the Balance Sheet in the Retained Earnings account. A debit in the Equity section points to a reduction. This means therefore that the Equity balance reduces as well meaning Option D is correct.
Answer:
The payments are all part of a LIQUIDATING DISTRIBUTION
Explanation:
The payments are all part of a LIQUIDATING DISTRIBUTION and not current distribution because a liquidation distribution can said to be a single distribution or one of a planned series of distributions that terminates a partner's entire interest in the partnership while Current distributions can be said to be all other distributions thay include those that reduce or decrease a partner's interest in the partnership.
Therefore in accordance with the liquidation, distribution laws Javier would have to recognize a gain or profit of $20,000 at the end of the year so to the fact that he only had $100,000 basis but is receiving $120,000 (12*10000).
Thus the partnership will not have to recognize a gain or a loss according to the information provided.
Answer:
1. cash
Explanation:
A cash account is one in which investor must pay the full amount of securities that were purchased. When using this type of account investor is not allowed to borrow from his broker so he must have sufficient funds available before purchasing securities.
Margin account in the other hand can lend money to the investor in case his balance is insufficient. The securities in the investor's portfolio will serve as collateral for the loan collected.
For example if an investor sells stock the money should be available after 3 days. In cash account investor has to wait for the full 3 days before withdrawal is made, while for margin account withdrawal can be made immediately by borrowing finds from the broker.
Answer:
Year end Adjusting Entry
Dr. Cr.
1.
Interest Revenue $410
Rent Revenue $410
2.
Property Tax Expense $800
Property Tax payable $800
3.
Service Revenue $3,300
Unearned Service Revenue $3,300
4.
Interest Revenue $300
Rent Revenue $300
5.
Salaries Expense $650
Salaries Payable $650
One only stand to lose what is paid to buy the stock If one own stock in a corporation that goes bankrupt.
<h3>What is stock?</h3>
Stock can be define as the unit of capital of a company, allocated to an individual. It is the fractional ownership of equity in an organization.
It is to be noted that stockholders are usually owners of the business hence are entitled to dividend at the end of the financial year.
Hence, one only stand to lose what is paid to buy the stock If one own stock in a corporation that goes bankrupt.
Learn more about stock here : brainly.com/question/1193187
