When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value of the share capital b. fair market value of the share capital on the date of record c. fair market value of the share capital on the date of declaration d. fair market value of the share capital on the date of distribution
Q: Debit Credit Cash $31,000 Accounts Receivable 7,400 Prepaid Insurance 21,000 Accounts Payable…
A:
Q: Accounting plays an important role by providing answers to questions faced by the users of…
A: Accounting is the process of recording of transactions, summarising it and posting it to obtain…
Q: QUESTION 14 If you are in the highest tax bracket. your tax rate on long-term capital gains is O a.…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on October 1 for…
A: Depreciation refers to the amount that is charged on the fixed assets throughout their useful life…
Q: How did they come up with the value 619,417 for PV of Benefits for the year 2015 using the formula…
A: The question is related to Time value of money. Present Value will be calculated with the help of…
Q: For the year ending December 31 2022. Sheridan Inc reports net income $147,000 and cash dividends…
A: Formula: Ending retained earnings balance = Beginning retained earnings + net income - dividends
Q: Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash…
A:
Q: What has been the major roles played by professional accounting bodies in the development of…
A: Accounting bodies play a great role in the development of accounting in various countries.
Q: Kenneth McFarland's weekly gross earnings for the week ending March 9 were $2,170, and her federal…
A: Formula: Social security tax amount = Gross pay x Social security tax rate
Q: Perdue Company purchased equipment on October 1 for $44,530. The equipment was expected to have a…
A: Depreciation refers to the amount that is charged on the fixed assets throughout their useful life…
Q: Perdue Company purchased equipment on October 1 for $44,530. The equipment was expected to have a…
A: Double Decline Method: It is a kind of accelerated depreciation technique in which the asset value…
Q: Which of the following statements is prepared by all not-for-profit organizations? O Satement of…
A: For non for profit organization the company shall prepare the fund flow statement showing the…
Q: March I Invested OMR 10,000 as capital March 3 Purchased office fumiture for OMR 3,000 from Blossom…
A: Introduction: Journals: Recording of business transactions in a chronological order. First step in…
Q: Bond Premium, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Premium…
A: 1. Bonds are instrument that are represent as loan to borrower by investor. generally a company is…
Q: At December 31, Gill Co. reported accounts receivable of $281,000 and an allowance for uncollectible…
A: Formula: Uncollectible amount = Accounts receivable x Uncollectible Percentage
Q: escription Apple Or otal revenue $42,905,000 $23,25 larnings before C1206 000
A: Need to calculate the ROE and ROA ration Ratio analysis needs to be done for the provided…
Q: Calculating Standard Quantities for Actual ProductionGuillermo’s Oil and Lube Company is a service…
A: Calculation of Standard Quantity of Oil that should have been used for 980 oil changes Standard…
Q: 4.12 A, B, and C are partners sharing profits in the ratio of 3:2:5, respectively. The goodwill of…
A: Methods to record the settlement with retiring partner 1) Paying the entire amount due immediately…
Q: When stock level reaches re-order level, the purchase department places order for Economic Order…
A: Economic Order Quantity: Economic order quantity (EOQ) is a computation that businesses use to…
Q: Test data, an integrated test facility, and parallel simulation are compared and contrasted.…
A: Introduction: Test data is data used solely for testing within computer programs, and it is…
Q: Problem #1. Your uncle has a taxable income of $85,142 last year. If he files as a head of…
A: A tax liability seems to be a tax that is owed to a taxing body or that has accrued for payment at a…
Q: When treasury stock is purchased for cash at more than its par value, what is the effect on total…
A: Answer) The correct answer in the given question is (b): Cost Method: DECREASE Par Value Method:…
Q: The trial balance of Alfa shows the following balances at 31 December 2021: Dr Cr…
A: Income Statement - Statement of Income is the Statement that contains profit earned and expense…
Q: Bought office machinery on credit from D Isaacs Ltd. (b) The proprietor paid a creditor, C Jones,…
A: In double entry system of accounting each transaction is recorded in two or more accounts. One or…
Q: Math calculation for a Training Center Business 1)Income statement 2)Cash flow 3)Balance sheet…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: The manufacturing costs of Barretto Enterprises for three months of the year follow: Total…
A: High-low method: It is the method in which Fixed cost and variable costs are separated from the…
Q: Fifteen $5,000 bonds redeemable at par bearing 8% coupons payable quarterly are sold nine years…
A: Lets understand the basics. When coupon interest rate is more than market interest rate then bond is…
Q: An entity acquired an operating license from the local council to operate a night club for ten years…
A: The question is related to the Amortization of license. The Amortization is calculated with the help…
Q: which of the following statement is correct relative to posting with use of special journals? A.…
A: Introduction:- Special journals are all accounting journals. Which are used to record specific…
Q: Year one income statement by months ( sales by year 3 $2.7m 2.7 m /3 = $900,000 average each year…
A: Total expenses = Costs of goods sold + Depreciation (Capital expenses), Location expenses,…
Q: Identify which scenario is an appropriate tax planning strategy. A taxpayer choosing to exclude cash…
A: Tax planning is to be considered important part . tax planning help to take advantage of…
Q: On January 1, 2021, Brianne Company acquired 30% of the voting share capital of another entity for…
A: Introduction:- The term "investment" refers to a financial asset formed with the goal of allowing…
Q: Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of…
A: Equity Section: Stockholders' equity, often known as owner's equity, is the portion of a balance…
Q: 4. The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Management of Parrent Corporation has asked your help as an intern in preparing some key reports for…
A: Direct material used = Beginning balance of raw material + Purchases of raw material - Ending…
Q: Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value)…
A: In the context of the given question, two independent cases are there. In case no. 1, the Board of…
Q: Is it really vital for a manufacturing company to prepare a budgeted income statement and balance…
A: A budgeted income statements statement that forecasts earnings, revenue, and expenses for the coming…
Q: Prepare a statement of cash flow for bramble inc using the direct method unit iV question 18
A:
Q: The costs of energy consumed in producing good units in the Baking Department of Victor Company were…
A: Cost per equivalent unit can be calculated by dividing the total cost of energy consumed by the…
Q: 93,000 Expense Supplies Expense Rent Expense Utilities Expense Miscellaneous Expense The following…
A: 1. Journalize all the December Month transactions in the books of Tommy Abad :- Date Particular…
Q: Question Content Area High-Low Method The manufacturing costs of Kellam Industries for the first…
A: a)Calculation of Variable cost per unit as follows:- = (Highest activity cost – Low activity cost) /…
Q: Question 2 (This question has 3 items, (a), (b), and (c)) Morry Games developed a new play station…
A: Cost Accounting- A cost accounting system is a continuous inventory accounting system used by…
Q: A partnership has the following capital balances: Jeng, Capital P60,000 Pong, Capital P30,000 PJ,…
A: Partnership- A partnership is a firm that involves two or more persons who are equally accountable…
Q: Olmstead Company has fixed costs of $459,200. The unit selling price, variable cost per unit, and…
A: Introduction Composite Break Even Point =Total Fixed Costs / Composite Contribution
Q: Capital balances of Ann and Eloida before the admission of May and Cristel are shown below. 4.9 P…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific…
A: Inventory is the accounting of commodities, component components, and raw materials used or sold by…
Q: Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity,…
A: Break Even Sales or Break Even level is the point at which the organisation doesn't earns any…
Q: Below are the financial statements for Aspirations Pty Ltd. Statement of Financial Position at 30…
A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…
Q: The statement that is NOT CORRECT about the general ledger is __________ . a. postings are based on…
A: Ledger is secondary book of the business in which the transactions which have earlier been recorded…
When a small, share capital dividend is declared, Retained Earnings is debited for the
a. par value of the share capital
b. fair market value of the share capital on the date of record
c. fair market value of the share capital on the date of declaration
d. fair market value of the share capital on the date of distribution
Step by step
Solved in 2 steps
- The amount attributable to every share of ordinary share capital outstanding during the period. a. stated value b. par value c. carrying value d. book valueHow would the share dividends distributable account balance be presented on the statement of financial position? * a. as part of current liabilities b. as addition to share capital c. as addition to retained earnings d. as addition to additional paid in capitalMatch each of the following terms with the correct definition: a. additional paid-in capitalb. issued and outstandingc. retained earningsd. treasury stocke. authorized share capitalf. par value Correct Definitions:A. The price at which each share is recorded in the company’s booksB. Held by investorsC. Cumulative amount of profits that have been plowed backD. The difference between the amount of cash raised by an equity issue and the par value of the issueE. The maximum number of shares that can be issued without shareholder approvalF. The amount that the company has spent buying back stock that it has not subsequently resold
- Match each of the following terms with the correct definition: a. additional paid-in capitalb. issued and outstandingc. retained earningsd. treasury stocke. authorized share capitalf. par value Correct Definitions:A. The price at which each share is recorded in the company’s booksB. Held by investorsC. Cumulative amount of profits that have been plowed backD. The difference between the amount of cash raised by an equity issue and the par value of the issueE. The maximum number of shares that can be issued without shareholder approvalF. The amount that the company has spent buying back stock that it has not subsequently resold SELECTED FORMULAS PVIFA = PVIF = requity = rassets + (rassets – rdebt) PV of tax shield = = Tc *DWACC = (1-Tc) * *() + *()Share dividends distributed shall be reported as a note to financial statement a reduction in total shareholders' equity an addition to share capital outstanding a current liability1. It represents the cumulative balance of periodic earnings, dividend distributions, prior period adjustments and other capital adjustments. a. Income summaryb. net incomec.dividends d. accumulated profits 2. The date on which liability for dividends must be recorded a. Date of recordb.Date of issuance c.Date of payment d. Declaration date 3. The amount attributable to every share of ordinary share capital outstanding during the period. a. Par value b. Stated value c. Carrying value d. Bookvalue 4. The date which determines who gets the dividend a. Date of payment b. Date of declaration c. Date of record d. Date of issuance 5. How is the treasury share account presented in the Statement of Financial Position? a. deducted from accumulated profitsb. deducted from shareholders’ equityc. part of reservesd. current asset
- The par value of ordinary share capital represents a. The amount received by the corporation when the share was originally issued. b. The book value of the share capital c. The liquidation value of the share capital d. The legal nominal value assigned to the share capitalIf shares are issued for a non-cash asset, the share should be recorded at? a. Zero b. Fair market value c. Par or stated value d. Cost3. The amount attributable to every share of ordinary share capital outstanding during the period. a. Par value b. Stated value c. Carrying value d. Bookvalue
- Liquidating dividends are credited to a. incomeb. Retained earningsc. Investment accountd. share capitalDividends in arrears on preference shares are reported in the financial statements as a (an) a. liabilityb. reduction from Retained Earningsc. reduction from Retained Earningsd. expenseWhich of the following affects the total Shareholders’ Equity? a. Declaration of a scrip dividend b. Declaration of share split c. Appropriation of retained earnings d. Retirement of treasury shares