College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 21, Problem 10SPA
To determine
Journalize the given transactions in the books of Company MM.
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Jensen Corporation’s board of directors met on June 3 and declared a regular quarterly cash dividend of $.40 per share for a total value of $200,000. The dividend is payable on June 24 to all stockholders of record as of June 17. Excerpts from the statement of financial position for Jensen Corporation as of May 31 are presented as follows.
Cash
$ 400,000
Accounts receivable (net)
800,000
Inventories
1,200,000
Total current assets
$2,400,000
Total current liabilities
$1,000,000
Assume that the only transactions to affect Jensen Corporation during June are the dividend transactions.
Question
Jensen’s quick (acid test) ratio would be
A.Decreased by the dividend declaration and increased by the dividend payment.
B.Unchanged by the dividend declaration and decreased by the dividend payment.
C.Unchanged by either the dividend declaration or the dividend payment.
D.Decreased by the…
Denna Company’s working capital accounts at the beginning of the year follow:
Cash
$
64,000
Marketable securities
$
27,400
Accounts receivable, net
$
335,600
Inventory
$
444,400
Prepaid expenses
$
6,800
Accounts payable
$
189,200
Notes due within one year
$
88,000
Accrued liabilities
$
54,600
During the year, Denna Company completed the following transactions:
Ex. Paid a cash dividend previously declared, $24,000.
Issued additional shares of common stock for cash, $188,000.
Sold inventory costing $65,200 for $94,000, on account.
Wrote off uncollectible accounts in the amount of $7,600, reducing the accounts receivable balance accordingly.
Declared a cash dividend, $24,000.
Paid accounts payable, $90,400.
Borrowed cash on a short-term note with the bank, $51,000.
Sold inventory costing $21,300 for $14,200 cash.
Purchased inventory on account, $45,500.
Paid off all short-term notes due, $139,000.
Purchased equipment for cash, $70,200.
Sold…
On January 1, Martinez Corporation's retained earnings accounts had the following balances:
Appropriation for debt retirement
$ 53,000
Unappropriated retained earnings
900,000
$953,000
A summary of the year's activities is given below:
Cash dividends declared and paid on preferred stock
$ 25,000
Cash dividends declared and paid on common stock
120,000
Additional appropriation for debt retirement
53,000
Net income for the year
310,000
Required:Prepare the retained earnings statement for the year ended December 31, 20--.
Chapter 21 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 21 - Income taxes are a unique expense of the corporate...Ch. 21 - Prob. 2TFCh. 21 - Prob. 3TFCh. 21 - Prob. 4TFCh. 21 - Prob. 5TFCh. 21 - Prob. 1MCCh. 21 - Prob. 2MCCh. 21 - Prob. 3MCCh. 21 - Prob. 4MCCh. 21 - Prob. 5MC
Ch. 21 - Prob. 1CECh. 21 - Prob. 2CECh. 21 - Teway Company declared and paid dividends in the...Ch. 21 - Prob. 4CECh. 21 - Prob. 5CECh. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Prob. 11RQCh. 21 - CORPORATE INCOME TAX Stanton Company estimates...Ch. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - Prob. 3SEACh. 21 - STOCK DIVIDENDS Kaufman Company currently has...Ch. 21 - STOCK SPLIT Goldstein Company has 100,000 shares...Ch. 21 - Prob. 6SEACh. 21 - STATEMENT OF RETAINED EARNINGS McGregor Company...Ch. 21 - Prob. 8SPACh. 21 - Prob. 9SPACh. 21 - Prob. 10SPACh. 21 - Prob. 11SPACh. 21 - Prob. 1SEBCh. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - COMMON AND PREFERRED CASH DIVIDENDS Ramirez...Ch. 21 - STOCK DIVIDENDS Martinez Company currently has...Ch. 21 - Prob. 5SEBCh. 21 - Prob. 6SEBCh. 21 - Prob. 7SEBCh. 21 - CASH DIVIDENDS AND INCOME TAXES During the year...Ch. 21 - CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT...Ch. 21 - Prob. 10SPBCh. 21 - Prob. 11SPBCh. 21 - Prob. 1MYWCh. 21 - Prob. 1ECCh. 21 - MASTRY PROBLEM On January 1, 20--, Dover Companys...Ch. 21 - CHALLENGE PROBLEM This problem challenges you to...
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