Answer:
1.
Option B is the correct answer.
2.
Dividends Paid = $55 million. Thus, option C is the correct answer.
Explanation:
1.
The statement about shareholders' equity given in option A that it is the difference between the paid-in capital and retained earnings is incorrect as the retained earnings are a part of the equity of shareholders and are included in the calculation of shareholders' equity. Thus, option B is the correct answer.
2.
The Net Income earned by a company is usually treated in two ways. It is either paid out as dividends to the shareholders or is retained in the business and transferred to the retained earnings account or both. Thus, we can calculate the amount of dividends paid by the following equation.
Closing balance of retained earnings = Opening balance of retained earnings + Net Income for the period - Dividends Paid
700 = 595 + 160 - Dividends Paid
700 + Dividends Paid = 755
Dividends Paid = 755 - 700
Dividends Paid = $55 million
Answer and Explanation:
The journal entry to record the given transaction is shown below:
Prepaid rent Dr $10,140
To Cash $10,140
(Being the prepaid annual rent paid in cash is recorded)
For recording this we debited the prepaid rent as it increased the assets and credited the cash as it reduced the cash so that the proper posting could be done
Monthly payment = $1774.71
Effective annual rate = 7.02%
The equation for a loan payment is
P = r(PV)/(1-(1+r)^(-n))
where
P = Payment per period
PV = Present value
r = interest rate per period
n = number of periods
Since the 6.8% interest rate is APR, we need to divide by 12 to get the interest per month. So in the above equation r = 0.068/12 = 0.005666667, the number of periods is 48 and the Present Value is 74400. Let's plug in the numbers and calculate.
P = r(PV)/(1-(1+r)^(-n))
P = 0.00566666666666667(74400)/(1-(1+0.00566666666666667)^(-48))
P = 421.6/(1-(1.00566666666666667)^(-48))
P = 421.6/(1-0.762439412691304)
P = 421.6/0.237560587308696
P = 1774.70516
So the month payment rounded to 2 decimal places is $1774.71
The effective interest rate is
ER = (1 + r/12)^12 - 1
Let's plug in the numbers and calculate.
ER = (1 + 0.068/12)^12 - 1
ER = (1 + 0.00566666666666667)^12 - 1
ER = (1.00566666666666667)^12 - 1
ER = 1.07015988024972 - 1
ER = 0.07015988024972 = 7.015988024972%
So after rounding, the effective interest rate is 7.02%
Total assets=Total liabilities+ Total equity
=> Total equity= total asset - total liabilities
a. Share holders equity=(11100-9300)= $1800
b. Share holders equity=(8700-9300)= -600 ~ 0
Rounded -600 to nearest whole number, that is 0
<h3>
What are shareholders?</h3>
A shareholder may be a individual or institution that has contributed cash in a enterprise in trade for a “share” of the possession. That proprietorship is spoken to by common or preferred offers issued by the company and held (i.e., claimed) by the shareholder. The shareholders are the proprietors of the company and give money related backing in return for potential profits over the lifetime of the company.
To learn more about shareholder, visit;
brainly.com/question/15186298
#SPJ4
Answer:
Ending RE at year-end: 494,000
Explanation:
As this is the first-year of operation there is no beginning Retained Earnings.
Sales Revenue of 4,340,000
Cost of Goods Sold (1,936,000)
Wage Expense (876,000)
Insurance Expense (324,000)
Administrative Expense (414,000)
Utilities Expense (192,000)
Selling Expense <u> (42,000) </u>
Net Income 556,000
Dividends paid: (62,000)
Ending RE 494,000
