ZuoTi.Pro
Question

Question 6 Loki Corporation earned net income of $90,000 during the year ended December 31 2016....

Question 6

Loki Corporation earned net income of $90,000 during the year ended December 31 2016. On December 15, Loki had declared the annual cash dividend on its $0.35 preferred shares (5,000 shares issued for $80,000) and a $0.40 per share cash dividend on its common shares (20,000 shares issued for $60,000). Loki then paid the dividends on January 4, 2017.

  1.    Journalize the following for Loki Corporation:
  •     Declaring the cash dividends on December 15, 2016.
  •     Paying the cash dividends on January 4, 2017.
  1.    Did Retained Earnings increase or decrease during 2016? If so, by how much?
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Journalize the following for Loki Corporation

Date Debit Credit
Dec-15 Retaining Earnings $    9,750
Dividends payable (5000 * $0.35) + (20000 * $0.40) $ 9,750
Jan-04 Dividends payable $    9,750
Cash $ 9,750

Did Retained Earnings increase or decrease during 2016? If so, by how much?

Retained Earnings
Net Income $ 90,000
Dividend $    9,750
Retained Earnings Increase in 2016 $ 80,250

Explanations :-

Dividends
Preferred Dividend (5000 * $0.35) $    1,750
Common Dividend (20000 * $0.4) $    8,000
$    9,750
0 0
Add a comment
Know the answer?
Add Answer to:
Question 6 Loki Corporation earned net income of $90,000 during the year ended December 31 2016....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Greenland Corporation earned net income of $95,000 during the year ended December 31, 2018. On December...

    Greenland Corporation earned net income of $95,000 during the year ended December 31, 2018. On December 15, Greenland declared the annual cash dividend on its 2% preferred stock (10,000 shares with total par value of $100,000) and a $0.50 per share cash dividend on its common stock (35,000 shares with total par value of $350,000). Greenland then paid the dividends on January 4, 2019. Read the requirements. a. Journalize for Greenland Corporation the declaration for the cash dividends on December...

  • Hazelnut Company earned net income of $75,000 during the year ended December 31, 2018. On December...

    Hazelnut Company earned net income of $75,000 during the year ended December 31, 2018. On December 15, Hazelnut declared the annual cash dividend on its 5% preferred stock (par value, $110,000) and a $0.25 per share cash dividend on its common stock (58,000 shares). Hazelnut then paid the dividends on January 4, 2019 Read the requirements. Requirement 1. Journalize for Hazelnut the entry declaring the cash dividends on December 15, 2018 (Record debits first, then credits. Select the explanation on...

  • Madison Company earned net income of $75,000 during the year ended December 31, 2016. On December...

    Madison Company earned net income of $75,000 during the year ended December 31, 2016. On December 20, Madison declared the annual cash dividend on its 8% preferred stock (par value, $150,000) and a $0.50 per share cash dividend on its common stock (45,000 shares). Madison then paid the dividends on January 10, 2017. Prepare the journal entries to record the declaration and the distribution of the dividends. Explanations are not required.

  • Gifford Corporation camed net income of $100.000 during the your ended December 31, 2018. On December...

    Gifford Corporation camed net income of $100.000 during the your ended December 31, 2018. On December 15, Getord declared the annual cash dividend on its per share cash dividend on is common stock (40.000 shares with total per value of $400,000). Gifford then paid the dividends on January 4, 2019 preferred stock 120.000 shares with lots par value of $200,000) and a $1.00 Read the requirements Journalire for Gifford Corporation the declaration for the cash dividends on December 15, 2018....

  • 6. Java Company earned net income of $85,000 during the year ended December 31, 2018. On...

    6. Java Company earned net income of $85,000 during the year ended December 31, 2018. On December 15, Java declared the annual cash dividend on its 4% preferred stock (par value, $120,000) and a $0.25 per share cash dividend on its common stock (50,000 shares), Java then paid the dividends on January 4, 2019. Read the requirements Requirement 1. Journalize for Java the entry declaring the cash dividends on December 15, 2018. (Record debits first, then credits. Select the explanation...

  • Company earned net income of $ 110 comma 000 during the year ended December ​31, 2018...

    Company earned net income of $ 110 comma 000 during the year ended December ​31, 2018 . On December ​15, Whitetea declared the annual cash dividend on its 6 ​% preferred stock​ (par value, $ 118 comma 000 ​) and a ​$1.00 per share cash dividend on its common stock left parenthesis 45 comma 000 ​shares). Whitetea then paid the dividends on January ​4, 2019 .

  • Eatory Company red not recone et 5100.000 euro the yow ended December 21, 2016. On december...

    Eatory Company red not recone et 5100.000 euro the yow ended December 21, 2016. On december 16, gry scared to run cash ovdend on to 3% preferred stock per vete. 3108.000) and a $1.00 per were candid on its common stock (58,000 shares). Largrey then paid he dividends on January 4, 2017 Requirements 1. Joumaltre for Eartgrey the entry declaring the cash dividends on December 15, 2016 2. Joumaltre for Earlgrey the entry paying the cash dividends on January 4,...

  • Eatory Company red not recone et 5100.000 euro the yow ended December 21, 2016. On december...

    Eatory Company red not recone et 5100.000 euro the yow ended December 21, 2016. On december 16, gry scared to run cash ovdend on to 3% preferred stock per vete. 3108.000) and a $1.00 per were candid on its common stock (58,000 shares). Largrey then paid he dividends on January 4, 2017 Requirements 1. Joumaltre for Eartgrey the entry declaring the cash dividends on December 15, 2016 2. Joumaltre for Earlgrey the entry paying the cash dividends on January 4,...

  • Question 17 Sleep Corporation was organized on January 1, 2017. During its first year, the corporation...

    Question 17 Sleep Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends: 2017 2018 2019 $6,000 $30,000 $60,000 Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 4% and not cumulative. Preferred Common Total 2017 2018 2019

  • On December 31, 2016, Kanuk Utilities Corporation which adopted IFRS had 600,000 common shares and 300,000...

    On December 31, 2016, Kanuk Utilities Corporation which adopted IFRS had 600,000 common shares and 300,000 noncumulative, non-convertible preferred shares issued and outstanding. Kanuk issued a 4% common stock dividend on May 15, 2017 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2017. On February 28, 2017, Kanuk issued 60,000 common shares. Also as a part of a 2016 agreement for the acquisition of Vick’s Vineyards Co, another 23,000 shares (already...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT