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Account name Accounts Payable Accounts Receivable Accumulated Depreciation furniture & fixtures Accumulated Depreciation Computer Hardware Accumulated Other Comprehensive Income Advertising Expense 45,000 Allowance for Doubtful
Account name Accounts Payable Accounts Receivable Accumulated Depreciation furniture & fixtures Accumulated Depreciation Computer Hardware Accumulated Other Comprehensive Income Advertising Expense 45,000 Allowance for Doubtful accounts Bad debt expense 16,000 Cash 137,000 Common Shares (unlimited number of shares authorized. 1000 issued) Contributed Surplus Depreciation Expense- Computer HW 0 Depreciation Expense- Furniture and fixtures 0 Computer Hardware 115,000 Furniture and fixtures 50,000 Goodwill 77,000 Income tax expense 20,000 Income tax payable 11.000 Insurance & licensing expense 8.000 Note Payable (instalments of $13.100/year') 131 .000 Prepaid Rent 10000 Rent Expense 85,000 Retained Earnings, beginning of year 87,000 Revenues 582.000 Salaries payable 20.000 Salary Expense 33l ,800 Supplies 22,200 Totals 97l000 QTlOOO . On December 10. 2021. the company declared $35,000 cash dividends for year 2021. The dividends were paid on January 10. 2022. . On July 1. 2021. the company declared a 15% common stock dividends when market share price was $600. The shares were distributed on November 15th= 2021 when market share price was $720. . The Supplies as at December 31. 2021 should only be $20000. . The Computer Hardware were purchased on Jan 1. 2021. It has a useful life of 10 years. with no expected residual value. Company uses the straight-line depreciation method. No depreciation was recorded for year 2021. . The Furniture & fixtures were purchased on Jan 1. 2015 and were expected to have a useful life often years. On Jan 1. 2022 the company donated the entire furniture & fixtures were scrapped with zero proceeds. Company uses the straight-line depreciation method. No depreciation was recorded for year 2021. a) Refer to item 1 & 2 in the question. Discuss how dividends declared in the year will affect Common shares and Retained Earnings balances as at Dec 31, 2021. What will be the outstanding number of common shares as at Dec 31. 2021
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