All categories

3 years ago

The company paid $35,000 cash in dividends to the owner, jen rogers. the entry needed to close the dividends account is:

2 answers:

8 0

The entry needed to close the dividend account is "Debit: Retained earnings $35,000 and credit: dividend expense $35,000" based on the journal transaction. The dividend is a portion of a company's earnings which be shared by the company to the investor as the return for their investment. This entry will decrease the retained earning balance.

Afina-wow [57]3 years ago

4 0

<u>The journal entry to close the dividends account is debited the retained earnings account and credited the dividend expenses account of $35,000. </u>

Further Explanation:

Dividend:

The dividend is the amount of profit given by the company to the shareholder. The shareholder invests in the shares of the company to earn dividends. Some companies provide a high dividend to attract the investor.

The company can give the dividend from the current year's income and the retained earnings of the company. If the company may pay out the dividend from the retained earnings, the company does not leave for investing the funds in the prospective projects.

Journal entry to pay the cash in the dividend to the owner, Jen rogers for $35, 000.

It is assumed that the dividend is paid from the retained earnings.

Retained earnings of the company are reduced by $35,000, that is why the retained earnings are debited.

The dividend expenses are paid $35,000, that is why the dividend expenses are credited.

Retained earnings account $35,000

To dividend expense $35,000

(being the dividend is paid to Jen rogers)

Learn more:

1. Learn more about earnings per share (EPS)

<u>brainly.com/question/10985616 </u>

2. Learn more about accounts accumulated value

<u>brainly.com/question/1033449 </u>

3. Learn more about laterally learning

<u>brainly.com/question/7063990 </u>

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Dividend

Keywords:

company, paid, $35,000, cash, dividends, owner, Jen rogers, needed, close, dividend account, retained earnings, debited, credited, amount of profit, shareholders.

You might be interested in

Calculate the ROE using the Strategic Profit Model for a company with the following data: Profit margin = 12% Total asset turnov

Svet_ta [14]

Answer:

≅ 21.8%

Explanation:

The Return on Equity can be calculated by ,

ROE = Net Profit Margin × Return asset × Financial leverage

Net profit margin = Profit margin = 12%

Return Asset = Total Asset turnover = 1.4

Financial leverage = Equity Multiplier = 1.3

Therefore,

ROE = 12 × 1.4 × 1.3

= 21.84% .

7 0

3 years ago

The following transactions occurred during a recent year:

Natasha_Volkova [10]

The Company's preliminary Net Income can be determined as $575.

Preliminary net income = Total Revenue - Total Expenses

= $575 ($4,230 - $3,655)

Revenue:

d. Sales Revenue $680

f. Service Revenue $2,870

i. Service Revenue $680

Total Revenue $4,230

Expenses:

a. Wages Expense $1,700

e. Utilities Expense $1,360

h. Travel Expense $115

k. Advertising Expense $480

Total Expenses $3,655

Thus, the company generated a preliminary net income of $575 for the period.

Learn more about determining net income at brainly.com/question/19850768

6 0

2 years ago

Selected financial information for Thornton Company for 2019 follows: Sales $ 2,000,000 Cost of goods sold 1,400,000 Merchandise

frutty [35]

Answer:

7.80 times

Explanation:

First of all we have to calculate the average inventory

Opening inventory= 159,000

Closing inventory= 200,000

Average inventory= (opening inventory+closing inventory)/2

= ( 159,000+200,000)/2

= 359,000/2

= 179,500

The next step is to find the merchandise inventory turnover which is calculated as

= Cost of goods/ Average inventory

Cost of goods= $1,400,000

Average inventory= 179,500

= 1,400,000/179,500

= 7.799 times

= 7.80 times (to 2 decimal places)

Hence the merchandise inventory was turned over 7.80 times in 2019

7 0

3 years ago

Read 2 more answers

The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Information about each firm

Nonamiya [84]

Answer:

The answer is "$4.311".

Explanation:

Calculating the EPS after the merger:

$\text{Stultz Corp Post Merger Earnings} = 220,000 + 1,000,000 \\\\$

$= \$1,220,000$

$\to \text{Number of Shares Post Merger:} \\\\=\frac{99,000}{3} + 250,000\\\\ = 283,000\\\\\text{EPS Post Merger} =\frac{\text{Stultz Corp Post Merger Earnings}}{\text{Number of Shares Post Merger}} \\\\$

$= \frac{1,220,000}{283,000} \\\\= \$4.311$

7 0

2 years ago

A company has many underutilized compute resources on-premises. which aws cloud feature will help resolve this issue?

BaLLatris [955]

AWS cloud feature will help resolve this issued as<u> Elasticity.</u>

<u></u>

<h3>What is elasticity ?</h3>

Elasticity is an economic measure of how sensitive one economic factor is to changes in another. For example, changes in supply or demand to the change in price, or changes in demand to changes in income.

<h3>What is Hooke's law of elasticity?</h3>

Hooke's law, law of elasticity discovered by the English scientist Robert Hooke in 1660, which states that, for relatively small deformations of an object, the displacement or size of the deformation is directly proportional to the deforming force or load.

<u></u>

To learn more about Elasticity, refer

brainly.com/question/5078326

#SPJ4

7 0

1 year ago