Explanation Journal entry : Journal is the primary record of the business transaction in chronological (date wise) order. Journal entry contains two effects one is debit and other is credit, under double entry book keeping system. Procedure for debiting and crediting an account: Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited. Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited. All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction: Adjusting entries : Adjusting entries refer to those entries that are reported at the end of the year to adjust the financial position of a firm based on the accrual basis of accounting. Option d: As per the given condition in the question, the company is required to prepare three separate journal entries. Prepare the journal entry for cash dividend as shown below. Date Particulars Debit ($) Credit ($) Dec 15 Dividend 1,600,000 Dividends payable 1,600,000 (To record the payment of cash dividend) Table 1 Prepare the journal entry for closed retained earnings as shown below. Date Particulars Debit ($) Credit ($) Dec 15 Retained earnings 1,600,000 Dividend 1,600,000 (To record the closed retained earnings) Table 2 Prepare the journal entry for stock split as shown below...

1st Edition

ISBN: 9780132162302

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading struc…

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Chapter 4, Problem 4.10MC

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Chapter 4 Solutions

Intermediate Accounting

Ch. 4 - Prob. 4.1Q Ch. 4 - ShoeBuy uses reversing entries for events such as...Ch. 4 - What is equity? What are the three components of...Ch. 4 - Prob. 4.4Q Ch. 4 - Will all transactions have a dual effect on the...Ch. 4 - Prob. 4.6Q Ch. 4 - What is meant by the term normal balance? Provide...Ch. 4 - Why is the general journal referred to as the book...Ch. 4 - Are account balances found in the general ledger?...Ch. 4 - What is the purpose of an unadjusted trial...

Ch. 4 - Explain the difference between the accrual basis...Ch. 4 - Under the accrual basis of accounting when do...Ch. 4 - Why are adjusting journal entries made? When do...Ch. 4 - What is a deferred revenue? When will the full...Ch. 4 - What is the purpose of the adjusted trial...Ch. 4 - Which statements can be prepared from the adjusted...Ch. 4 - Prob. 4.17Q Ch. 4 - Jefferson, CPAs provides accounting services for a...Ch. 4 - Gates Accounting Services (GAS), a sole...Ch. 4 - Prob. 4.3MC Ch. 4 - State University sold all of its basketball...Ch. 4 - Prob. 4.5MC Ch. 4 - Sampson Manufacturing Company (SMC) has an empty...Ch. 4 - On July 15, Year 1, Southeastern University hired...Ch. 4 - Embree Corp. purchased a four-year insurance...Ch. 4 - The Cougars football team sells season tickets in...Ch. 4 - Prob. 4.10MC Ch. 4 - Prob. 4.1BE Ch. 4 - Transaction Analysis. Florences Floral...Ch. 4 - Journal Entries. Using the information provided in...Ch. 4 - Prob. 4.4BE Ch. 4 - Prob. 4.5BE Ch. 4 - Prob. 4.6BE Ch. 4 - Retained Earnings. In its first year of...Ch. 4 - Retained Earnings. Using the information provided...Ch. 4 - Prob. 4.9BE Ch. 4 - Prob. 4.10BE Ch. 4 - Prob. 4.11BE Ch. 4 - Prob. 4.12BE Ch. 4 - Prob. 4.13BE Ch. 4 - Prob. 4.14BE Ch. 4 - Prob. 4.15BE Ch. 4 - Closing Entries. Using the information provided in...Ch. 4 - Closing Entries. At year-end Nelsons Nursery, Inc...Ch. 4 - Closing Entries. Readers, Inc., an online...Ch. 4 - Adjusting Journal Entries. Barnard and Associates...Ch. 4 - Prob. 4.20BE Ch. 4 - Adjusting Journal Entries. Gerhard News collects...Ch. 4 - Prob. 4.22BE Ch. 4 - Prob. 4.23BE Ch. 4 - Prob. 4.24BE Ch. 4 - Transaction Analysis. The following transactions...Ch. 4 - Prob. 4.2E Ch. 4 - Prob. 4.3E Ch. 4 - Prob. 4.4E Ch. 4 - Prob. 4.5E Ch. 4 - Prob. 4.6E Ch. 4 - Prob. 4.7E Ch. 4 - Prob. 4.8E Ch. 4 - Prob. 4.9E Ch. 4 - Prob. 4.10E Ch. 4 - Prob. 4.11E Ch. 4 - Prob. 4.12E Ch. 4 - Prob. 4.13E Ch. 4 - Prob. 4.14E Ch. 4 - Prob. 4.15E Ch. 4 - Prob. 4.16E Ch. 4 - Prob. 4.17E Ch. 4 - Prob. 4.18E Ch. 4 - Prob. 4.19E Ch. 4 - Prob. 4.20E Ch. 4 - Prob. 4.21E Ch. 4 - Prob. 4.22E Ch. 4 - Prob. 4.1P Ch. 4 - Prob. 4.2P Ch. 4 - Prob. 4.3P Ch. 4 - Prob. 4.4P Ch. 4 - Prob. 4.5P Ch. 4 - Prob. 4.6P Ch. 4 - Prob. 4.7P Ch. 4 - Prob. 4.8P Ch. 4 - Prob. 4.9P

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Solution Summary: The author explains that the correct option is c. All transactions affect the accounting equation that is displayed below.

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