The Following Selected Transactions Took Place During the Current Year

question 87

Essay

The following selected transactions took place during the current year for a company:
Feb 25 Declared a $2.50 per share cash dividend on 20,000 shares of common stock outstanding
Mar. 20 Paid the cash dividends declared on Feb. 25.
Dec 31 Closed the $72,000 credit balance in Income Summary that reflects net income to Retained Earnings.
(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:

Primary Mental Abilities

a theory suggesting that intelligence is made up of several primary abilities, such as reasoning, verbal comprehension, numerical skills, and spatial visualization, that are distinct from each other.

L.L. Thurstone

A pioneering psychologist known for his contributions to psychometrics and the theory of multiple intelligences.

Deviation IQ Scores

A method of measuring intelligence where an individual's score is expressed as a deviation from the mean score of a standardization sample.

Raw Scores

The initial, unmodified scores obtained from assessments or tests before being transformed through scaling, norming, or statistical adjustments.