Bensen Co. paid a dividend of $5.25 on its common stock yesterday
The company's dividends are
expected to grow at a constant rate of 8.5% indefinitely. If the required rate of return on this stock is
15.5%, compute the current value per share of Bensen Co. stock.
A) $43.90 B) $76.43 C) $81.38 D) $56.23
C
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Closing entries serve two important purposes: (1) to return the balances in all temporary or nominal accounts to zero to start the next accounting period and (2) to transfer the net income (or net loss) and the dividends of the period to the Retained Earnings account
a. True b. False Indicate whether the statement is true or false
Adam Inc uses a perpetual inventory system. Jan. 1 On hand, 10 units at $2 each $ 20 4 Sold 8 units for $10 each 80 22 Purchased 50 units at $4 each 200 26 Sold 48 units for $10 each 480 If Adam uses the LIFO method, how much is cost of goods sold for the month of January?
a. $204 b. $208 c. $212 d. $560
Melody, age 17, makes a contract with Seung, who is an adult. Melody:
a. may exercise the power of avoidance, called disaffirmance, while still a minor, and thereby be released from any liability on the contract. b. may ratify the contract while still a minor, thereby surrendering the power of avoidance. c. has entered a void contract since she lacked capacity. d. may disaffirm only after reaching the age of majority.
The following unadjusted and adjusted trial balances are from the current year's accounting system for Excelsior. Excelsior
Trial Balances For Year Ended December 31 ? Unadjusted Trial Balance Adjusted Trial Balance? Debit?CreditDebit?CreditCash11,300?11,300?Accounts receivable16,340?17,140?Office supplies1,145?645?Prepaid advertising1,000?450?Building26,700?26,700?Accumulated depreciation-Building …?1,300?6,300Accounts payable ……………………...?3,320?3,500Unearned services revenue ……………?4,410?3,010Retained earnings ……………………….?17,905?17,905Services revenue…………………….?72,400?74,600Salaries expense ……………………….34,500?34,500?Utilities expense………………….. 5,450? 5,630?Advertising expense …………………….. 2,900? 3,450?Supplies expense ………………………..?? 500?Depreciation expense- building………….?? 5,000?Totals………………….99,33599,335105,315 105,315Present the six adjusting entries in general journal form that explain the changes in the account balances from the unadjusted to the adjusted trial balance. What will be an ideal response?