ABC declared a property dividend. The dividend consisted of 10,000 common shares of its investment in XYZ Company. The shares had originally been purchased at $4 per share and had a $1 par value. The value of the shares on the declaration date is $7 per share. What is the first entry that should be recorded related to this dividend? a. Retained earnings 70,000 Property dividends payable 70,000 b. Retained earnings 70,000 Property dividends payable 40,000 Gain 30,000 c. Investment in XYZ 30,000 Retained earnings; 30,000 d. Investment in XYZ 30,000 Gain 30,000
Solved
Show answers
More tips
- F Family and Home How to Remove Fading from Clothes: Tips and Tricks...
- F Family and Home How to Remove Tar Stains: Tips and Recommendations from Experts...
- L Leisure and Entertainment How to Learn to Draw Graffiti: Tips for Beginners...
- G Goods and services How to sew a ribbon: Tips for beginners...
- L Leisure and Entertainment How to Land on the Moon: Your Comprehensive Guide...
- H Health and Medicine Novomin: What is it and how to use it?...
- A Art and Culture Attention, the Final Episode of Margo is Almost Here!...
- A Art and Culture How to Learn Screaming: Step-by-Step Guide for Beginners...
- D Dating, Love, Relationships 10 Useful Tips on How to Survive a Breakup?...
- S Style and Beauty How to Break in New Shoes: 7 Simple Methods...
Answers on questions: Business
- B Business I need some help with this homework....
- B Business A company has sales of $125,000, variable costs of $45,000 and fixed costs of $30,000. The break-even point in sales dollars is $ ,...
- B Business 5 elements of Design for Delight?...
- B Business This is what it said when I tried to put a lenny face as a question: Don t use such phrases here, not cool! It hurts our feelings :( . . . like bro idc bout your feelings...
- B Business 75 and wr a. P-waveC. Rayleigh waveb. S-waved. Love wave_01. Travel along the surface of the earth from the point directly above theepicenter and is the most damaging type.02 Travel...
- B Business Part Two: Hard times caused total community income to fall by eight percent and this caused enrollment at TTA to rise from 8,000 to 8,400. What is the income elasticity and what...
- B Business Jackie invests $1,000 in an account that earns 5% simple interest. Amber invests $800 in an account earning 8% interest compounded annually. Who will have earned more interest...
- B Business Carl sent an e-mail to more than three thousand employees about a software update. The employees need to prepare for this update but he found that many people did not even read...
- B Business An article in the Wall Street Journal on the recreational vehicle (RV) Industry listed several factors that led to a larger quantity of RVs sold: a. Increase confidence among households...
- B Business Louis needs to make an investment that will double in 5 years. Which interest rate, compounded annually, is the lowest rate that will allow for this to happen? A 4.4% B. 7.2% C....
Ответ:
D. Investment in XYZ 30,000 Gain 30,000
Explanation:
The value of shares have increased from $4 to $7. Which means they are now increased by 30,000 (10,000 x $3). The question refers to the increase in value of Shares rather than buying them at new value and therefore, Option A is incorrect.
While the question does mentions declaration of property dividend, it does not mention by how much the same was paid. Hence, the entry of Option B is also incorrect.
When value of Shares are increased then it results in Gain in Shares and effects the Balance Sheet rather than the Income Statement. Therefore, the entry recording Retained Earnings in Option C is incorrect.
Option D is correct, as the Investment in XYZ has increased by 30,000 and simultaneously it has resulted in Gain by 30,000. Hence, this is the first entry that should be recorded.
Ответ:
Managerial and Leadership Careers such as Accountant, Lawyer, Doctor
Explanation:
Vocational Schools prepare students with on the technical side of the job. The prepare for careers in Engineering, Printing, Graphics and Designing.
However a Post Secondary prepare students for managerial and leadership roles which often require critical thinking and decision making in various areas. Careers include Accountant, Lawyer, Doctor.