Answer:
The journal entries are required with corresponding effect on retained earnings;
Explanation:
a. Cash 10,000*3 Dr.$30,000
Common Stocks 10,000*1 Cr.$10,000
Paid in Capital-Common Stocks 10,000*(3-1) Cr.$20,000
b. Dividend Expense Dr.$30,000
Dividend Payable Cr.$30,000
c. Dividend Payable Dr.$30,000
Cash Cr.$30,000
d. Treasury stock 500*12 Dr.$6,000
Cash Cr.$6,000
The retained earnings will reduce by the dividend amount of $30,000 declared and paid.
<span>The company president does not believe that the formula should be altered for fear it will tarnish the company's brand. </span>She prefers that the company spend more on marketing and
increase the price. The company’s accountants believe that if marketing costs are increase
by $400,000 then the company can achieve a selling price of $42 per bottle without losing
any sales. At this price, will the company achieve its target operating income of 40% of
revenue?
Total cost
= $9,600,000
Add:
Increase in marketing costs=
400
,000
Total costs of redesigned table =
$10
,000,000
Revised cost per unit ($10,000,000 ÷ 400,000 units)
= $25
Target cost per unit ($42 × 0.60)
= $25.20
Yes, this proposal allows the company to meet its goal of target costs less than 60% of
revenue and target operating income greater than 40% of revenue.
Limited government licences that create a monopoly do so because a barrier to enter the market exists.
Monopoly can be established by the government by a form of integration or form naturally, it can preserve excess profit because barriers to entry prevent competitors from entering the market.
Company’s products or services