Question
In: Accounting
1. beginning common stock balance is $40,000 retained earnings balance is $50,000, investments through stock issuances...
1. beginning common stock balance is $40,000 retained earnings balance is $50,000, investments through stock issuances are $20,000, net income is $30,000, and devidends are $10,000. What is total ending equaity?
2. What journal entry does a company normally make to record payment of cash for future insurance coverage?
a. Debits Cash and credits insurance expense.
b. debits insurance expense and credits cash.
c. debits insurance expense and credits prepaid insurance.
d. debits prepaid insurance and credits cash.
Solutions
Expert Solution
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1. Ending retained earnings = Beginning retained earnings + Net income - Dividends = 50,000+30,000-10,000 = 70,000 Total ending equity= 40,000 + 20,000 + 70,000 = 130,000 |
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2. The entry would be Debit : prepaid insurance Credit : Cash Option D |
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ekkarill92 answered 2 years agoRelated Solutions
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Ameristar, Inc. can obtain funds for future investments through
retained earnings, new issues of common stock, issuance of debt,
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Ameristar, Inc. can obtain funds for future investments through retained earnings, new issues of common stock,...
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and issuance of preferred stock. The Board of Directors believe an
appropriate capital structure is one where funds are acquired in
the following mix: 30% debt, 10% preferred stock, and 60% common
stock. New issuance or flotation costs for the issuance of new
securities amount to 3% for debt, 5% for preferred stock, and 10%
for common stock. Ameristar has $180...
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Using the data needed, determine ending retained earnings.
Beginning Retained Earnings $150,000
Dividends Paid $40,000
Net Loss ($10,000)
Total Assets $400,000
Current Liabilities $45,000
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d. Assets = Liabilities + Stockholders’ Equity.
2. On January 1, Art Inc. started the year with a $492,000
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C. Financial risk decision
D. Capital budgeting decision
New projects should be funded
using:
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Statement of Stockholders’ Equity
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#33
Common stock
Retained earnings
Expenses:
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$300,000
$275,000
Salaries
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Issuance
#35
Administrative
340,000
Net income
125,000
Utilities
10,000
Dividends
#36
Total expenses
675,000
Ending
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$350,000
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#34
Balance Sheet
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Liabilities
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Accounts payable
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A/R
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Notes payable
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Supplies
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?
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e.
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-2.
Consider the following...
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