QUESTION 21 Dividends are declared out of A Capital Stock B. Paid-in Capital in

Question

QUESTION 21 Dividends are declared out of A Capital Stock B. Paid-in Capital in Excess of Par C.Treasury Stock D. Retained Earnings QUESTION 22 On January 1, 2017, Meeks Corporation issued S5 ,000,000. 10-year, 4% bonds at 102. Interest is payable annually on January 1 record this transaction on January 1, 2017 is OA Cash The journal entry to 5,000,000 Bonds Payable ,000,000 B. Cash 5,100,000 Bonds Payable Premium on Bonds Payable ,000,000 100,000 C. Cash 5,100,000 Bonds Payable 5,100.000 D. Premium on Bonds Payable 100,000 5.000,000 Cash Bonds Payable 5,100,000

Explanation / Answer

Question 21. Answer Option (D) Retained Earnings

when companys declared dividend to shareholders, then in companys balance sheet retained earnings amount will be reduced. Because dividend are payed from retained earnings.

Question 22. Answer Option (B)

January 1,2017       cash .....................................5,100,000

                                     Bond payable...........................................5,000,000

                                     Premium on Bonds payable..........................100,000

                        ( As bond issued for premium)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.