Which clause states that the written agreement accurately reflects the final, complete version of the agreement

The shareholders' equity of Red Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred

mario62 [17]

Answer:

b. 22,000

Explanation:

The computation of amount of dividends common shareholders is shown below:-

Amount of annual preferred stock dividend that preferred stockholders are supposed to get.

= $400,000 par value × 6% = $24,000

Total Cash Paid to Paid to Dividends in Arrears at

Dividend paid Preferred Common Year end

2011 $40,000 $24,000 $16,000

2012 $20,000 $20,000 $4,000

2013 $50,000 $28,000 $22,000

Total $110,000 $72,000 $38,000

Amount of Dividend Common Shareholders will receive in 2013 = $ 22,000

This is because, out of $ 50,000 dividend declared, $ 28000 will be for preferred stockholders ($24000 annual + $4000 arrears)

7 0

4 years ago

Richard Palm is the accounting clerk of Olive Limited. He uses the source documents such as purchase orders, sales invoices and

Alik [6]

Answer:

Segregation of duties

Explanation:

Internal Controls are set of rules and guidelines that are followed to ensure effectiveness of business operations. The main risk in the business is weak internal controls. There are some organizations with strong internal controls but implementation of such controls is a challenge for organizations. There are human errors, IT security risks, fraud and compliance risk.

The risks associated with Olive limited is that there is no segregation of duties, Richard Palm is preparing journal vouchers, posts the journal vouchers and reconciles the balance himself. If he makes an error in recording a transaction there is no one who reviews his work and can identify an error. Also if Richard is involved in a fraud and collaborates with purchase department or sales department staff, he can pass a transaction without any supervision.

6 0

4 years ago

Liam is writing a request for a letter of recommendation. He is listing all the information the recipient would need to write th

GaryK [48]

Answer:

The body

Explanation:

The body is the longest part of a document or letter and is generally split into three sub-categories: introduction, key material and description.

The introductory section specifies the letter's purpose.

The key material contains all the specific information needed and does not have any fixed duration specifications.

The last section sums up the information given, reaffirms the purpose of the document.

6 0

3 years ago

June 1 Stockholders invested $21,800 cash in the business in exchange for common stock. 2 Purchased a used van for deliveries fo

True [87]

Answer:

June 1st

Cash 21,800 debit

Common Stock 21,800 credit

June 2nd

Van-automobile 14,200 debit

Cash 4,000 credit

Note payable 10,200 credit

June 3rd

Rent expense 400 debit

Cash 400 credit

June 5th

Accounts receivables 5,200 debit

Sales Revenue 5,200 credit

June 9th

Dividends 300 debit

Cash 300 credit

June 12th

Supplies 200 debit

Accounts Payable 200 credit

June 15th

Cash 1,400 debit

Accounts receivables 1,400

June 17th

Gasoline expense 200 debit

Accounts Payable 200 credit

June 20th

Cash 1,300 debit

Service Revenue 1,300 credit

June 23th

Note payable 600 debit

Cash 600 credit

June 26th

utilities expense 350 debit

cash 350 credit

June 29th

accounts payable 200 debit

cash 200 credit

June 30th

salaries expense 1,730 debit

cash 1,730 credit

Explanation:

Rules to perform journal entries:

credit = debit

also there should be at lease one account on debit and one in credit.

We must also remember that debits must be enter first.

Also, each acount must represent a single event or stuff. It cannot represent both stuff.

7 0

4 years ago

Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance fo

zysi [14]

Answer:

(D) $ 1,450

Explanation:

The ending balance in allowance for uncollectible accounts is calculated by the following equation.

Opening Balance + Allowance for the year - Receivables written off = Ending Balance

$ 1,610 + $ 1,590 (0.5 % of sales on credit, $ 318,000 *0.5%) - $ 1,750 ( Receivables written off) = Adjusted allowance for uncollectible accounts $ 1,450

The amounts collected are not relevant in calculating the ending balalnce

4 0

3 years ago