Answer:
Explanation:
The journal entries are shown below:
On October 1
Dividend Declared A/c Dr $650 (2,600 shares × $0.25)
To Dividend payable A/c $650
(Being dividend is declared)
On October 15
No entry is required
On October 31
Dividend payable A/c Dr $650
To Cash A/c $650
(Being dividend is paid for cash)
The company Divine Apparel declares a dividend of $0.25 on October 1, subsequently on October 31, the company pays out these dividends to all registered shareholders as of October 15. The total dividend payout would be $650.
The actions you described pertain to what is often referred to in the world of stocks and finance as dividend declaration and payment. On October 1, Divine Apparel declares a dividend of $0.25. This declaration doesn't result in a financial transaction just yet, but rather it promises a future cash outflow to shareholders.
To calculate this, we multiply the number of shares - 2,600 shares in this case - by the declared dividend of $0.25. This calculation would result in a total dividend of $650.
October 15 marks the 'record date', this is the date when the company looks at its records to see who the shareholders are. An investor must be listed as a holder of record to ensure the right of a dividend payout. It's important to note that there are no accounting entries to be made on this date, this is purely an administrative date.
Finally, October 31 is the 'payment date'. Every shareholder of record as of October 15 will receive the stipulated dividend. In this case, Divine Apparel pays out $650 in total dividends to the shareholders it had registered on October 15.
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Answer:
4,494.68
Explanation:
Formula
Fc = Ic (1+i) ^ n
Where;
Fc= Final Capital
Ic= Inicial Capital
i= interest rate
n= period
In this particular case:
Fc = 1234 (1+0.034556) ^ 8 + 2345 (1+0.03456) ^ 6
Fc = 4,494.68
Answer:
A. $147,000
Explanation:
All cost incurrend in the installation of the assembly line, and their put to use to meet the company demand will be capitalized
the machine cost
the labor to install the machine
the parts added to the assembly line
rearrange of the assembly line
All those cost were incurred to leave the assembly line ready to use, are associate with the long-term asset so it can be capitalized through it.
75,000 + 14,000 + 40,000 + 18,000 = 147,000
Record the issuance of the installment note payable and the first two monthly payments.
Issuance: Installment Note Payable $46,000; First two payments: Interest Expense $230.00, Installment Note Payable $659.31 each month.
On January 1, 2021, Tropical Paradise records the issuance of a 6%, five-year installment note payable with a principal amount of $46,000. This note is obtained from the bank to finance the purchase of a BMW convertible for promotional purposes related to resort properties. The terms of the loan stipulate monthly payments of $889.31, with the first installment due on January 31, 2021.
For the first two monthly payments:
1. The Interest Expense is calculated based on the outstanding balance of the loan and the interest rate. In the first month, the interest is $46,000 * 6% / 12 = $230.00.
2. The remaining amount of the monthly payment is applied to reduce the principal, recorded as a repayment of the Installment Note Payable. The principal repayment is $889.31 - $230.00 = $659.31.
This process repeats in the second month, with the interest recalculated based on the remaining balance, and the remaining amount again applied to reduce the principal. These entries reflect the gradual repayment of both interest and principal over the life of the loan.
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Answer:
Journal entry
Explanation:
The Journal entry is shown below:-
1. Cash Dr, $46,000
To Notes payable $46,000
(Being issuance of notes is recorded)
2. Interest expense Dr, $230
Notes payable Dr, $659.31
To Cash $889.31
(Being payment of first installment is recorded)
3. Interest expense Dr, $226.70
Notes payable Dr, $662.61
To Cash $889.31
Working note :-
First installment interest expenses
= $46,000 × 6% × 1 month ÷ 12 month
= $230
Second installment interest expenses
= ($46,000 - $659.31) × 6% × 1 month ÷ 12 month
= $45,340.68 × 6% × 1 ÷ 12
= $226.70
Answer:
$202,500
Explanation:
Working capital is the difference between current assets and current liabilities. Therefore, the formula for calculating working capital is as below.
Working capital = current assets- current liabilities
in this case
current assets =
cash $200,000
account receivable $75,000
prepaid expenses of $12,500,
Total current assets = $287,500
current liabilities
accounts payable of $50,000
other current liabilities of $35,000
Total current liabilities = $85,000
working capital = $287,500 - $85,000
=$202,500
b. The product sold by one firm is a perfect substitute for the products sold by other firms in the same industry.
c. All the firms in the industry are the same size.
d. The product sold by one firm is a perfect complement for the products sold by other firms in the industry.
e. Firms in the industry can produce the same product with a different quantity of inputs.
Answer:
The correct answer is letter "B": The product sold by one firm is a perfect substitute for the products sold by other firms in the same industry.
Explanation:
Homogeneous products are those that cannot be differentiated one from another because they have similar features and satisfy the same need. They could even be sold at the same or nearly the same price. Under this scenario, these products are perfect substitutes from one another. Consumers will not be affected if one of the manufacturers decides to stop operations.