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Accounts

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Issue:

History

 

Written by:

Deana S

 

Date added:

January 29, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

11 / 2880

 

Was viewed:

5716 times

 

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Essay content:

[Note that the overview to Topic 4 explains why this is so.] Although the note receivable from Maynard was paid, a dividend for an offsetting amount was also paid—so there is no increase in cash as a result of the owner’s transactions. 3. Retained earnings has not increased by the amount of net income for the month ($19,635) because Maynard declared and paid a dividend of $11,700...
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Retained earnings has not increased by the amount of net income for the month ($19,635) because Maynard declared and paid a dividend of $11,700. Therefore, retained earnings increased $7,935 ($19,635 - $11,700). (The dividend was apparently used to “cancel” her debt to the company.) 4. As we discussed in class, we should not think of “worth” in terms of balance sheet accounts—which are stated at cost...
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