Question

how to compute for gain on sale of land, cash from sale of common stock, and cash used for dividends?

Answer 1

Answer:

Gain on sale of land:

The sum by which the returns from the offer of land surpassed the carrying amount of the land sold. It is accounted for as a non-working or "other" thing on a various advance salary proclamation.

To ascertain the gain or misfortune on the offer of a benefit, you look at the measure of money got for the resource for the advantage's book (conveying) esteem at the season of the deal. On the off chance that the money got is more noteworthy than the asset's book esteem, the thing that matters is recorded as a gain.

In the event that the money got is not exactly the benefit's book esteem, the thing that matters is recorded as a misfortune.

So as to have the book an incentive at the season of the deal, you should record the depreciation expense up to the date of the deal.

On the off chance that the advantage is traded rather than sold, the bookkeeping treatment will frequently be unique.

Cash from sale of common stock:

Ascertain the aggregate money produced by the stock deal by increasing the quantity of offers times the moving cost per share. Decide the issue costs by including the expenses paid to the speculation banks for endorsing the stock issue, the lawful charges and costs and any phenomenal bookkeeping expenses.

Subtract the aggregate issue costs from the aggregate money add up to get the net money figure.

Cash used for dividends:

An investor might need to know how much an organization has paid out in dividends in the previous year. On the off chance that the organization has not specifically revealed this data, it is as yet conceivable to infer the sum if the financial specialist approaches the company's income statement and its start and ending balance sheets.

On the off chance that these reports are accessible, the count of profits paid is as per the following:

1. Subtract the retained earnings figure in the completion monetary record from the held profit figure at the outset asset report. This estimation uncovers the net change in held income got from movement inside the revealing time frame.

2. Go to the base of the salary proclamation and concentrate the net profit figure.

3. On the off chance that the net benefit figure on the salary explanation coordinates the net change in held income from the primary count, at that point no profit was issued amid the period. In the event that the net change in held income is not exactly the net benefit figure, the thing that matters is the measure of profits paid out amid the period.