Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NAA transaction recorded as a debit to Dividends and a credit to Cash.AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of IncomeCash Flows???????
What will be an ideal response?
(D) (NA) (D) (NA) (NA) (NA) (D)
Recognizing cash dividends decreases both assets and stockholders' equity. Because credits decrease assets, the decrease in assets (Cash) is recorded with a credit, and because debits decrease stockholders' equity (Dividends), the decrease in stockholders' equity is recorded with a debit. There is no effect on the income statement because paying a dividend is not an expense. There is a cash outflow for financing activities on the statement of cash flows.
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At December 31, 2015, the accounting records of Wyndam Corporation contain the following: Accounts payable $ 16,000 Accounts receivable $ 40,000 Land 240,000 Cash ? Capital stock ? Equipment 120,000 Building 180,000 Notes payable 190,000 Retained earnings 160,000 If capital stock is $260,000, what is the December 31, 2015 cash balance?
a. $46,000 b. $506,000 c. $94,000 d. $86,000
Correlation analysis might be used to determine whether a relationship existed between how respondents answered one item and how they answered another
Indicate whether the statement is true or false
On June 1, Delaware Co. had one unit in beginning inventory that cost $10.00. During June, Delaware paid cash to purchase two additional inventory items. Delaware purchased the first item for cash at a cost of $10.00, and the second at a cost of $12.00. Delaware Co. sold two inventory items for $24.00 each, receiving cash. Based on this information alone, indicate whether each of the following items is true or false. ________ a) The amount of ending inventory will be $10 assuming the LIFO cost flow method was used. ________ b) Cost of goods sold would be $24 assuming the weighted-average cost flow method was used. ________ c) Cash flow from operating activities in June would be $28 assuming a FIFO cost flow method was used. ________ d) Cash flow from operating activities in June would
be $26 independent of what cost flow method was used. ________ e) The amount of gross margin would be $26 assuming the FIFO cost flow method was used. What will be an ideal response?
Benefits of becoming an entrepreneur include independence, satisfaction, financial reward, self-esteem, and contributions to society.
Answer the following statement true (T) or false (F)