The Following Selected Transactions Took Place During the Current Year

question 97

Essay

The following selected transactions took place during the current year for a company:
$\begin{array}{|l|l|}\hline \text { March 25 } & \begin{array}{l}\text { Declared a \$2 per share cash dividend on 20,000 shares of common Stock } \\\text { outstanding. }\end{array} \\\hline \text { April 20 } & \text { Paid the cash dividends declared on March 25. } \\\hline \text { Dec. 31 } & \begin{array}{l}\text { Closed the \$52,000 credit balance in Income Summary that reflects net } \\\text { incometo Retained Earnings. }\end{array} \\\hline\end{array}$
(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:

Slope

In mathematics, the slope is a measure of the steepness or the inclination of a line, defined as the ratio of the rise over the run between two points on the line.

Intercept

In statistics and mathematics, the point on a graph where a line crosses the y-axis, often used in the context of linear regression.

Errors

Mistakes or inaccuracies that can occur in data entry, calculation, accounting, or any process, leading to discrepancies and potential issues.

Cost Analysis

The process of evaluating the costs involved in producing a product or providing a service, to determine ways to reduce or manage expenditures.