Karsten runs a forklift at work. She also uses hand tools to perform her tasks. Sometimes Karsten has to talk to customers about

Response:

Regarding the data provided, we have the following details:

Statement of Stockholder's Equity

Date              Common Stock    Retained Earnings        Total

1 June                $150,000              $1,610,000              $1,760,000

Stock issued       $70,000                                                 $70,000

Net income                                        $112,000                   $112,000

Dividends                                          ($26,000)                 ($26,000)

30 June               $220,000         $1,696,000              $1,916,000

Note: Dividends are subtracted from net income.

Also, net income contributes to retained earnings.

Answer:

The equity cost will be 10.93 %

Thus, option (E) is correct

Explanation:

The given risk-free return is

Market risk premium RPM = 5.25 % = 0.0525

We will calculate the cost of equity from reinvested earnings, denoting the cost of equity

Cost of equity is calculated as

Cost of equity = risk-free rate +

= 0.0410 + 1.30 x 0.0525 = 0.10925 = 10.93 %

So option (E) is the correct choice

Response:

Year 1: Cumulative preferred stock dividends amount to $51,000; Common stock dividends amount to 0.

Year 2: Cumulative preferred stock dividends amount to $93,000; Common stock dividends amount to $12,000.

Year 3: Cumulative preferred stock dividends amount to $72,000; Common stock dividends equal $9,000.

Year 4: Cumulative preferred stock dividends amount to $72,000; Common stock dividends total $48,000.

Clarification:

Year 1

Total dividends distributed = $51,000

Cumulative preferred stock dividends due = 60,000 * $60 * 2% = $72,000

Paid dividends to cumulative preferred stock = $51,000

Outstanding cumulative preferred stock dividends carried over = $72,000 - $51,000 = $21,000

Common stock dividends = 0

Year 2

Total dividends distributed = $105,000

Cumulative preferred stock dividends due for year 2 = 60,000 * $60 * 2% = $72,000

Total cumulative preferred stock dividends owed = 72,000 plus the amount carried over from year 1 = $72,000 + $21,000 = $93,000

Dividends paid on cumulative preferred stock = $93,000

Dividends paid to common stock = $105,000 - $93,000 = $12,000

Year 3

Total dividends distributed = $81,000

Cumulative preferred stock dividends owed = 60,000 * $60 * 2% = $72,000

Dividends paid on cumulative preferred stock = $72,000

Dividends paid to common stock = $81,000 - $72,000 = $9,000

Year 4

Total dividends distributed = $120,000

Cumulative preferred stock dividends owed = 60,000 * $60 * 2% = $72,000

Dividends paid on cumulative preferred stock = $72,000

Dividends paid to common stock = $120,000 - $72,000 = $48,000

Answer:Jalen journal $

Date

Jan 1,2021

Land Dr. 860,887

Note payable Cr. 860,887

Narration. Issuance of note for the above amount, payable in four installments for land purchase.

June 30,2021

Note payable Dr 215,221.64

Cash Cr. 215,221.64

Narration. Payment of the first installment for the land acquisition.

December 31,2021

Note payableDr 215,221.64

Cash.Cr. 215,221.64

Narration. Payment of the second installment for the land acquisition.

2. Remaining balance on note payable as of December 31, 2021 is $400,000

Interest expense balance is $30,443.28.

Explanation:

The land account is debited to reflect its purchase, while the notes payable account is credited to recognize the liability.

Payments made in the first and second periods debit the respective installment amounts.

The note payable balance indicates the outstanding principal payments of $800,000, whereas the interest expense denotes the additional amount beyond the principal.