In accordance with restrictive debt covenants, Maynard Company appropriated $20,000 of retained earnings. How would the appropriation affect the financial statements?
A. No entry would be required.
B. Decrease appropriated retained earnings and increase retained earnings for $20,000.
C. Decrease appropriated retained earnings and decrease cash for $20,000.
D. Decease retained earnings and increase appropriated retained earnings for $20,000.
Answer: D
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Which of the following may an auditor use as a defense under the Securities Act of 1933?
a. Contributory Negligence b. Scienter c. Due Care d. Immaterial loss
In accounting, depreciation refers to the
a. allocation of asset cost. b. wearing away of an asset. c. decline in value of an asset. d. obsolescence of an asset.
Assume the following information for Petra Sales, Inc
- Common Stock, $1.00 par, 232,000 shares issued, 186,000 shares outstanding
- Paid-In Capital in Excess of Par: Common: $1,770,000
- Retained Earnings: $2,450,000
- Treasury Stock: 26,000 shares purchased at $12 per share
If Petra Sales purchases an additional 13,000 shares of treasury stock at $18 per share, what number of shares will be shown as issued and outstanding?
A) 18 issued; 186,000 outstanding
B) 219,000 issued; 186,000 outstanding
C) 232,000 issued; 173,000 outstanding
D) 232,000 issued; 186,000 outstanding
Why is it important for young people to establish a good credit history as soon as possible?
What will be an ideal response?