Answer:
Common stock dividend distributable = Par * Number of shares * % dividend
= 13 * 46,500 * 15%
= $90,675
Stock Dividend = Number of shares * market price * % dividend
= 46,500 * 18 * 15%
= $125,550
Date Account Title Debit Credit
Dec, 1 Stock Dividend $125,550
Common Stock Dividend Distributable $90,675
Paid in Capital in excess of Par- $34,875
Common stock
Date Account Title Debit Credit
Dec, 31 Common Stock Dividend Distributable $90,675
Common Stock $90,675
Answer:
Answer is in table which is attached in the attachment. Please refer to the attachment.
Explanation:
<em>Calculations:</em>
Status quo: Revenue 30* 200= 6000, VC 30*20= 4000, CM 6000-4000= 2000, 2000-3000= -1000 (Contribution Margin – fixed cost = Profit/Loss)
(b) Since the loss is less in Advertising even after $300 cost of advertisement, so we would choose the option 3 for advertising.
(c). In order to survive in the period of recession, a business needs cash and reducing operation expenses can do it better. This business is in loss from last three months so it might be useful to shut down the business for some period.
<span>The answer to this
question is “TRUE”. A bond is just like a loan. However, the main difference is
that with loans, the public is borrowing money from a bank or lending source.
With Bonds, the company borrows money from the public. Both have interest rates
and payment due based on the terms of agreement.</span>
Answer:
b) 20%
Explanation:
Stockholder's equity
Net Income $ 25,000
Common Dividends -$ 5,000
Preferred Dividends -$ 6,000
TOTAL $ 14,000
Common Dividends
-$ 5.000 / $ 25.000 = 20%
Net Income
Dividend per share $0,63 / (Earning per Share) $3,13 = 20%
Dividend per share $0,63 ==> Common Div. ($5,000) / 8.000 (Q. Common)
Earning per share $3,13 ==> Net Income ($25,000) / 8.000 (Q. Common)
