Answer:
option D is correct.
Explanation:
The entry to record stock dividend is:
Debit
Stock Dividends 2400000 []
Credit
Stock Dividends Distributable 1600000 []
Paid in capital in excess of par = 2400000 - 1600000 = 800000
Stock dividends will not affect the total equity of the stockholder
Therefore option D is correct.
Answer:
1.- 35,000 helment x 0.6 kilograms = 21,000 STD quantity
2.- 21,000 kilograms x $8 per kilogram = $168,000
3.- 9,000 F
4.- 12,000 U
Explanation:
std cost $8.00
actual cost $7.60
quantity 22,500
difference $0.40
The actual cost for each kilogram is lower than expected. This means the copamny saved cash in the purchase. This variance is favorable.
saved 0.40 per kilograms x 22,500 purchased
price variance $9,000.00
std quantity 21000.00
actual quantity 22500.00
std cost $8.00
difference -1500.00
The actual quantity was higher than expected, this variance will be unfavorable
1,500 extra kilograms x $8 each =
quantity variance $(12,000.00)
The above answer can be explained as under -
The journal entry to record estimated warranty expense is -
Warranty Expense Dr. ............. $ 17,800
Estimated Warranty Liability .......... Cr. $ 17,800.
The estimated warranty liability is calculated on the basis of the credit sales of the year and percentage estimated. Here, the credit sales of the year is $ 356,000 and the estimated percentage is 5 % of credit sales. Thus, estimated warranty liability is = $ 356,000