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frozen [14]
3 years ago
8

Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of di

rectors declares a 20 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018.
Required:
Write down the necessary journal entry to record the declaration of the stock dividend.
Business
1 answer:
Gnom [1K]3 years ago
6 0

Answer:

<u>December 31, 2018</u>

Debit : Dividend $40,000

Credit : Shareholders for dividends $40,000

Explanation:

When dividends are declared, we Debit an Equity Element - Dividend and Credit the Liability - Shareholders for dividends.

Calculation of this dividend is made on the stockholders in existence at the on a stated date (January 15 in this case) and at par value ($2) as follows :

Dividend = 100,000 x $2.00 x $0.20 = $40,000

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On January 1, Year 1, Bell Corp. issued $340,000 of 10-year, 8 percent bonds at their face amount. Interest is payable on Decemb
Free_Kalibri [48]

Answer and Explanation:

The journal entries are shown below:

On Jan 1

Cash $340,000

     Bonds payable  $340,00

(Being the bond payable is issued for cash)

For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities  

On Dec 31

Interest expense ($340,000 × 8%) $27,200

       To  Cash  $27,200

(Being the interest expense for year 1 is recorded)

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets  

On Dec 31

Interest expense  ($340,000 × 8%) $27,200

    To Cash  $27,200

(Being the interest expense for year 1 is recorded)  

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets  

7 0
3 years ago
Charlie the cat stole $20 from his cat mom. He's planning on spending the money he stole on catnip (Q1) and dental treats (Q2).
RideAnS [48]

Answer:

$ 20= Q1 (0.5 ) + Q3( 3)

Explanation:

Total Amount = $ 20

Dental treats Q2= $ 3

Catnip Q1= $ 0.50

Maximum no of Dental Treats he can get is = $ 20 /$3= 6.66

If he gets maximum dental treats i.e 6 , $18 will be spent (3*6)

He will be left with = $ 20- $ 18= $ 2

The maximum no of catnip he can get after buying 6 dental treats from $ 2= $ 2/$0.5= 4

Let Q1 denote the catnip and Q3 denote the dental treats then the equation would be like

$ 20= Q1 (0.5 ) + Q3( 3)

So putting the values for q1=0,1,2,3,4,5,6,7,8,9,10

for values 0-4  Q3 will be $ 18

for values 4-6 Q3 will be $ 15

for values 6-8  Q3 will be $ 12

From values Zero on wards the budget constraint will be a slope but after value 4 the change will be after every two points.

The slope will look like the one given in the diagram.

Download docx
6 0
2 years ago
The cost-benefit principal states that
REY [17]

Cost-benefit principle would state that you would only take an action if the benefit outweighs the cost.

For example: It may cost me $5 to drive to work, but I make $50 for showing up, I would go because the benefit I get outweighs the cost and I am better off going than staying at home.

6 0
2 years ago
Dobles Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Estimated Overhea
Sati [7]

Answer:

Dobles Corporation

The unit product cost of product D28K is:

$144.01

Explanation:

a) Data and Calculations:

Activity Cost Pools    Estimated Overhead Cost   Expected Activity

Assembly                     $228,060                            18,000 machine hours

Processing orders         $34,068                              1,200 orders

Inspection                    $125,560                               1,720 inspection hours

Units of D28K produced per year = 420 units

D28K requirements:

Machine hours     460

Orders                    80

Inspections             10

Direct materials cost per unit = $48.96

Direct labor cost per unit = $25.36

Activity rate:

Assembly                     $228,060/18,000 = $12.67 per machine hour

Processing orders         $34,068/1,200 = $28.39 per order

Inspection                    $125,560/1,720 = $73 per inspection-hour

Cost of D28K:

Machine hours     460 * $12.67 =   $5,828

Orders                    80 * $28.39 = $22,712

Inspections             10 * $73 =           $730

Total overhead costs =                $29,270

Overhead cost per unit = $69.69 ($29,270/420)

Unit Cost of D28K:

Direct materials cost per unit = $48.96

Direct labor cost per unit =        $25.36

Overhead cost per unit =          $69,69

Total unit cost =                         $144.01

7 0
2 years ago
An investment bank agrees to underwrite an issue of 15 million shares of stock for Looney Landscaping Corp.
Naya [18.7K]

Answer:

A) Looney Landscaping will receive $187,500,000 (= $12.50 x 15,000,000 shares)

The bank's profit will be $11,250,000 (= ($13.25 - $12.50) x 15,000,000 shares)

B) Looney Landscaping will receive $166,260,000 (= ($12.50 - $0.275) x 13,600,000 shares)

The bank's profit will be $3,740,000 (= $0.275 x 13,600,000 shares)

If the stocks are sold at $11.95 per share, then Looney Landscaping will receive  $158,780,000 (= ($11.95 - $0.275) x 13,600,000 shares)

The bank's profit will be the same, $3,740,000

6 0
3 years ago
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