The Following Selected Transactions Took Place During the Current Year

question 223

Essay

The following selected transactions took place during the current year for a company:
$$\begin{array} {| l | l | } \hline \text { Feb } 25 & \text { Declared a } \$ 2.50 \text { per share cash dividend on } 20,000 \text { shares of common } \\&\text { stock outstanding }\\\hline \text { Mar. } & 20 \text { Paid the cash dividends declared on Feb. } 25 . \\\hline \text { Dec } & \text { Closed the } \$ 72,000 \text { credit balance in Income Summary that reflects net } \\31 & \text { income to Retained Earnings. }\\\hline\end{array}$$
(a)Prepare the journal entries for these transactions.
(b)If Retained Earnings had a $155,000 credit balance on January 1,calculate its year-end balance as of December 31.

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Definitions:

Northwest Corner Rule

An allocation technique used in transportation and logistics to minimize costs by initially assigning shipments to the cheapest routes starting from the northwest corner of a cost matrix and proceeding accordingly.

Intuitive Method

A cost-based approach to finding an initial solution to a transportation problem.

Improvement Index

An indicator or metric used to quantify the level of improvement in a process, product, or service over time.

Stepping-Stone Method

An iterative technique for moving from an initial feasible solution to an optimal solution in the transportation method.