I am interested in a couple of conceptual things that are happening in this prob
ID: 2559659 • Letter: I
Question
I am interested in a couple of conceptual things that are happening in this problem using T-Accounts (no need to do a spreadsheet of all activites). Find the dividends declared and paid using T-Accounts (please explain the whole shareholders equity protion w/ t-accounts to find dividend paid amount). Also, account for the 1K in other expenses using JE's or T-Accounts. Show all work please.
Account Balances January 1 2013 December 31 2013 Debits S 1,400 2,800 1,700 500 8,100 1,300 7,000 15,000 Cash Accounts Receivable (net) Marketable Securities (at cost Allowance for Change in Value S 2,400 2,690 3.000 800 7,910 1,710 5,400 15,000 46,200 Prepaid Items Investments (ong-term) Buildings and Equipment Discount on Bonds Payable 5,400 Credits $16,400 4,150 2,504 650 400 Accumulated Depreciation Accounts Payable Income Taxes Payabke Wages Payable Interest Payable Note Payable (long-tem) 12% Bonds Payable Deferred Taxes Payabke Convertible Prefemed Stock, $100 par Common Stock, $10par Additional Paid-in Capital Unrealized Increase in Value of Marketable Securities Retained Eamings $16,000 3,800 2,400 1,100 3,500 10,000 1,196 800 9,000 14,000 8,700 500 10,000 9,800 21,500 13,700 800 14,100 85,400 Additional information for the year: a. Sales Cost of goods sold Depreciation expense Wages expense Other operating expenses Bond interest expense Dividend revenue Gain on sale of investments Loss on sale of equipment Income tax expense Net income $39,930 (19,890 (2,100) (11,000 (1,000) (410 820 700 (200) 4,800Explanation / Answer
Computation of dividend paid by analyzing retained earnings account: Beginning balance 10000 Add:Net income 4800 14800 Less:Ending balance 14100 Dividend paid 700 Recording of other expenses: Debit Credit Other expenses 1000 Cash or expenses payable 1000
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