Answer:
Expense & revenue summary a/c (credit balance) = $3500
Explanation:
1. Dr Expense & revenue summary 52500
Cr Sales discount 1500
Cr Sales return & allowance 3000
Cr Depreciation expense 25000
Cr Salaries expense 23000
(Close expenses to expense & revenue summary a/c)
2. Dr Sales 56000
Cr Expense & revenue summary 56000
(Close sales to expense & revenue summary a/c)
3. Dr Expense & revenue summary a/c 3500
Cr Retained earning a/c 3500
(To close expense & revenue summary a/c)
4. Dr Retained earning 2000
Cr Expense & revenue summary 2000
(Close dividend to expense & revenue summary a/c)d
Answer:
$300,000
Explanation:
Although the property dividend was distributed on January 15, year 6. the <u>amount that will be used is the value of the shares as at the declaration date and not the distribution date </u>
Hence, since the aggregate market price of the tell shares held by bain was $300,000. on the declaration date, the entry to record the declaration of the dividend should include a debit to retained earnings (or property dividends declared) of $300,000
Answer:
1. Assets is debited for $10,000 as loans.
2. Liabilities is credited for $10,000 as deposits.
Explanation:
Note: This question is not complete as the amount is omitted. The complete question is therefore presented before answering the question as follows:
Suppose banks keep no excess reserves and that all banks are currently meeting the reserve requirement. The Federal Reserve then makes an open market purchase of $10000 from Bank 1.
Use the T-account below to show the result of this transaction for Bank 1, assuming Bank 1 keeps no excess reserves after the transaction.
The explanation of the answer is now given as follows:
Note: See the attached photo for Bank 1's T-Account.
In the attached photo, we can see that:
1. Assets is debited for $10,000 as loans.
2. Liabilities is credited for $10,000 as deposits.
Answer:
The Ideal Capital structure is approximately 20% of Debt and 50% of Equity. Thus, Optimal Capital Structure of Tobang Company is 40:60.
At 40% debt ratio the company’s Weighted Average Cost of Capital (WACC) is minimized.
Explanation:
