- Journal Entries to record Stockholders Equity Transactions.
Concept Introduction:
Stockholders equity Transactions refer to, transactions carried out by an organisation by issuing its shares. The main purpose of issuance of shares is to raise funds, but shares could also be issued, to pay dividends in the form of "Stock Dividends", Pay off Lenders, Creditors, Promoters in lieu of Cash etc.
Requirement 1
Concept Introduction:
Retained Earnings comprises amounts of Net Income that have not been distributed as dividend, but have been saved for further development of the organisation. Besides Net Income other entries like Stock dividend, Sale of Treasury Stock, Dividends paid off are also routed through the retained earnings account.
Requirement 2
Statement of Retained Earnings.
Concept Introduction:
Stockholders Equity Section:
Stock Holders Equity Section Comprises of Total Stock holding, Retained Earnings and Paid in Capital in Excess of Stockholding at the end of the year.
Requirement 3
Stockholders Equity Section of The

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Chapter 13 Solutions
FUND ACCOUNTING PRINCIPLES BUNDLE
- Hudson Industries has income from operations of $48,000, invested assets of $240,000, and sales of $840,000. Use the DuPont formula to compute the rate of return on investment (ROI).arrow_forwardI need answer of this general accounting questionarrow_forwardQuick answer of this accounting questionsarrow_forward
- What is its profit margin for the financial accounting?arrow_forwardCompute the percentage of total return? Accountingarrow_forwardHudson Drilling & Mining (HDM) currently generates $90,000 in annual credit sales. HDM sells on terms of net 45, and its accounts receivable balance averages $15,000. HDM is considering a new credit policy with terms of net 30. Under the new policy, sales will decrease to $85,000, and accounts receivable will average $17,000. Compute the days sales outstanding (DSO) under the existing policy and the proposed policy.arrow_forward
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