Mumford and Sons Corp. paid a dividend of $5,000 to its shareholders. How would this transaction...
Mumford and Sons Corp. paid a dividend of $5,000 to its shareholders. How would this transaction affect net income?
Group of answer choices
Decrease net income by $5,000
Increase stockholders’ equity by $5,000 and no effect on net income
Increase net income by $5,000
Not enough information given to determine an answer
No effect
PreviousNext
Homework Answers
No Effect on Net Income
Explanation :-
Due to dividend paid, it will not impact on net income . However, it will reduce stockholder equity.
Add Answer to:
Mumford and Sons Corp. paid a dividend of $5,000 to its
shareholders. How would this transaction...
What is the effect to a business when its shareholders receive a large dividend? A. equity...
What is the effect to a business when its shareholders receive a large dividend? A. equity will increase and asset will decrease B. equity will decrease and an asset will increase C. an expense will increase and an asset will decrease D. an asset will decrease and equity will decrease
Multiple Choice Question 99 On January 1, 2018, Sheffield Corp., dedared a 10% stock dividend on...
Multiple Choice Question 99 On January 1, 2018, Sheffield Corp., dedared a 10% stock dividend on its common stock when the fair value of the common stock was $32 per share. Stockholders' equity before the stock dividend was declared consisted of: Common stock, $10 par value, authorized 200,000 shares; Issued and outstanding 129000 shares $1290000 Additional paid in capital on common stock 149000 Retained earnings 659000 Total stockholders' equity $2098000 What was the effect on Sheffield's retained earnings as a...
QUESTION 1 Record the transaction below Shareholders' Equity The following events took place in its first...
QUESTION 1 Record the transaction below Shareholders' Equity The following events took place in its first month of business Assets Liabilities Common StockRetained Earnings Issued common stock for cash SELECT AN ANSWER EACH, EVEN IF THERE IS NO EFFECT. IF THERE IS NO EFFECT, SELECT "O NO EFFECT." Assets Liabilities -Common Stock A (15,000) Common Stock B. 15,000 Dividend C. 15,000 Net Income 15.000 Common Stock E. 15,000 Cash r. (15,000) Cash G. 15,000 Sales H. 15,000 Notes Payable Retained...
Freeman, Inc. paid a supplier for purchases made on credit last month. How does this transaction...
Freeman, Inc. paid a supplier for purchases made on credit last month. How does this transaction affect total assets? Decrease. How does this transaction affect total liabilities? Increase. Question 13 2 pts The Villar Company paid its building rent for all of 20X1 on 1/1/X1. Villar makes an adjusting entry at the end of January related to this rent. How does this adjusting entry affect net income? Decrease.
Bridgeport Corp. reported the following amounts in the shareholders’ equity section of its December 31, 2019...
Bridgeport Corp. reported the following amounts in the shareholders’ equity section of its December 31, 2019 SFP: Preferred shares, $7 dividend (9,000 shares authorized, 2,000 shares issued) $206,000 Common shares (unlimited authorized, 29,000 issued) 696,000 Contributed surplus 81,700 Retained earnings 300,000 Accumulated other comprehensive income 67,000 Total $1,350,700 During 2020, the company had the following transactions that affect shareholders’ equity. 1. Paid the annual 2019 $7 per share dividend on preferred shares and a $3 per share dividend on common...
During 2022, its first year of operations as a delivery service, Grouper Corp. entered into the...
During 2022, its first year of operations as a delivery service, Grouper Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $123,000 in cash. 2. Borrowed $37,000 by issuing bonds. 3. Purchased delivery trucks for $64,000 cash. 4. Received $15,000 from customers for services performed. 5. Purchased supplies for $6,100 on account. 6. Paid rent of $5,800. 7. Performed services on account for $11,800. 8. Paid salaries of $27,700. 9. Paid a...
John invests $30,000 in JHL Inc. in exchange for common stock. How would this affect the...
John invests $30,000 in JHL Inc. in exchange for common stock. How would this affect the basic accounting equation for JHL Inc.? Group of answer choices No change to assets; No change to liabilities; Increase stockholders’ equity Decrease assets; No change to liabilities; Increase stockholders’ equity Decrease assets; Increase liabilities; No change to stockholders’ equity Increase assets; No change to liabilities; Increase stockholders’ equity Increase assets; Increase liabilities; No change to stockholders’ equity
During 2022, its first year of operations as a delivery service, Ayayai Corp. entered into the...
During 2022, its first year of operations as a delivery service, Ayayai Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $100,000 in cash. 2. Borrowed $35,000 by issuing bonds. 3. Purchased delivery trucks for $50,000 cash. 4. Received $14,000 from customers for services performed. 5. Purchased supplies for $2,700 on account. 6. Paid rent of $4,200. 7. Performed services on account for $10,000. 8. Paid salaries of $26,000. 9. Paid a...
The following transaction has been recorded in a particular accounting period. Determine the effect of this...
The following transaction has been recorded in a particular accounting period. Determine the effect of this transaction on the Accounting Equation Please note: do not overthink the scenario. Instead, deal only with the facts provided. The Accounting Equation effects being requested in any given scenario are for the current period only A business purchases Inventory for $5,000 cash. Increase in Asset Increase in the No Efecto Shareholders Equity Increase in increase in Libis Decrease in Shareholders Equity Increase in As...
During 2017, its first year of operations as a delivery service, Grouper Corp. entered into the...
During 2017, its first year of operations as a delivery service, Grouper Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $123,000 in cash. 2. Borrowed $37,000 by issuing a note. 3. Purchased delivery trucks for $64,000 cash. 4. Received $15,000 from customers for services performed. 5. Purchased supplies for $6,100 on account. 6. Paid rent of $5,800. 7. Performed services on account for $11,800. 8. Paid salaries of $27,700. 9. Paid...
Multiple Choice Question 99 On January 1, 2018, Sheffield Corp., dedared a 10% stock dividend on its common stock when the fair value of the common stock was $32 per share. Stockholders' equity before the stock dividend was declared consisted of: Common stock, $10 par value, authorized 200,000 shares; Issued and outstanding 129000 shares $1290000 Additional paid in capital on common stock 149000 Retained earnings 659000 Total stockholders' equity $2098000 What was the effect on Sheffield's retained earnings as a...
QUESTION 1 Record the transaction below Shareholders' Equity The following events took place in its first month of business Assets Liabilities Common StockRetained Earnings Issued common stock for cash SELECT AN ANSWER EACH, EVEN IF THERE IS NO EFFECT. IF THERE IS NO EFFECT, SELECT "O NO EFFECT." Assets Liabilities -Common Stock A (15,000) Common Stock B. 15,000 Dividend C. 15,000 Net Income 15.000 Common Stock E. 15,000 Cash r. (15,000) Cash G. 15,000 Sales H. 15,000 Notes Payable Retained...
Freeman, Inc. paid a supplier for purchases made on credit last month. How does this transaction affect total assets? Decrease. How does this transaction affect total liabilities? Increase. Question 13 2 pts The Villar Company paid its building rent for all of 20X1 on 1/1/X1. Villar makes an adjusting entry at the end of January related to this rent. How does this adjusting entry affect net income? Decrease.
During 2022, its first year of operations as a delivery service, Grouper Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $123,000 in cash. 2. Borrowed $37,000 by issuing bonds. 3. Purchased delivery trucks for $64,000 cash. 4. Received $15,000 from customers for services performed. 5. Purchased supplies for $6,100 on account. 6. Paid rent of $5,800. 7. Performed services on account for $11,800. 8. Paid salaries of $27,700. 9. Paid a...
During 2022, its first year of operations as a delivery service, Ayayai Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $100,000 in cash. 2. Borrowed $35,000 by issuing bonds. 3. Purchased delivery trucks for $50,000 cash. 4. Received $14,000 from customers for services performed. 5. Purchased supplies for $2,700 on account. 6. Paid rent of $4,200. 7. Performed services on account for $10,000. 8. Paid salaries of $26,000. 9. Paid a...
The following transaction has been recorded in a particular accounting period. Determine the effect of this transaction on the Accounting Equation Please note: do not overthink the scenario. Instead, deal only with the facts provided. The Accounting Equation effects being requested in any given scenario are for the current period only A business purchases Inventory for $5,000 cash. Increase in Asset Increase in the No Efecto Shareholders Equity Increase in increase in Libis Decrease in Shareholders Equity Increase in As...
During 2017, its first year of operations as a delivery service, Grouper Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $123,000 in cash. 2. Borrowed $37,000 by issuing a note. 3. Purchased delivery trucks for $64,000 cash. 4. Received $15,000 from customers for services performed. 5. Purchased supplies for $6,100 on account. 6. Paid rent of $5,800. 7. Performed services on account for $11,800. 8. Paid salaries of $27,700. 9. Paid...
Most questions answered within 3 hours.
-
The income statement for the month of June, 2014 of Happy Smiles
Enterprises contains the following...
asked 50 seconds ago -
1-Calculate the mass in grams of 2.55 moles of KCl
2- Calculate how many moles are...
asked 1 minute ago -
1. Choose value for p between 0.20 and 0.80. It should have at
least two decimal...
asked 2 minutes ago -
QUESTIONS: 500 words for the question
In defining abnormality, the criteria of “deviance”, “distress”
and “dysfunction”...
asked 3 minutes ago -
A sample of n = 25 scores produces a t statistic of t =
-2.062. If...
asked 21 minutes ago -
Given the following, compute the after tax cost of debt: The par
value of the firms...
asked 15 minutes ago -
Coding in C. Please only use stdio.h (which would mean no malloc
or anything like that)...
asked 20 minutes ago -
Use the fundamental accounting equation to find the missing
amounts.
Scenario
Assets
Liabilities
Equity
1
$...
asked 18 minutes ago -
A population has a mean of 200 and a standard deviation of 60.
Suppose a sample...
asked 23 minutes ago -
A bicyclist starting at rest produces a constant angular
acceleration of 1.10 rad/s2 for wheels that...
asked 37 minutes ago -
The
half-life of a radioactive source is 14.0 minutes. How much time
must elapse before the...
asked 35 minutes ago -
Given P(Ec ) = 0.43, P(F) = 0.52, and P(EF) = 0.18.
Find P( E |...
asked 1 hour ago