The Following Selected Transactions Took Place During the Current Year

question 31

Essay

The following selected transactions took place during the current year for a company:
$$\begin{array} { | l | l | } \hline \text { March } 25 & \begin{array} { l } \text { Declared a } \$ 2 \text { per share cash dividend on } 20,000 \text { shares of common Stock } \\\text { outstardiris }\end{array} \\\hline \text { April } 20 & \text { Paid the cash dividends declared on March } 25 . \\\hline \text { Dec. } 31 & \begin{array} { l } \text { Closed the } \$ 52,000 \text { credit balance in Income Summary that reflects net } \\\text { income to Retained Earnings. }\end{array} \\\hline\end{array}$$
(a)Prepare the journal entries for these transactions.
(b)If Retained Earnings had a $75,000 credit balance on January 1,calculate its year-end balance as of December 31.

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Definitions:

Weber's Perspective

A theoretical viewpoint based on the work of sociologist Max Weber, emphasizing the role of bureaucracy, rationalization, and the social aspects of economic action in society.

Traditional Authority

The inherited right of individuals to expect loyalty and obedience from others; authority based in custom and tradition.

Rational-Legal

A concept in sociology that describes a form of governance or organization founded on laws, rules, and procedures rather than on traditional or charismatic authority.

Favoritism

The practice of giving unfair preferential treatment to one person or group at the expense of others.