Question

1) On Nov. 1, 2017, the board of directors of Disney Claire Inc. declared a $7.00 per share cash dividend on 90,000 shares of $1 par value common stock. The dividend will be paid to stockholders' who own shares on Dec. 29, 2017. The dividend will be paid on Feb. 14, 2018. What journal entry, if any, is required on each of the following dates? a. Nov. 1, 2017 45 b. Dec. 29, 2017+ 4 45 c. Feb. 14, 2018 40 40 0 2) Al-bracken Co. began the year with an accounts receivable balance of $78,000, and ended the year with an accounts receivable balance of $54,000. During the year, Al-bracken Co. recorded $445,400 of sales on account. How much cash did Al-bracken Co. collect from its customers during the year? 3) Elle's Soap Co. began the year with an accounts payable balance related to inventory purchases of $15,000. The balance in the account at the end of the year was $26,800. During the year, Elle's Soap Co. purchased $118,000 of inventory on account. How much cash did Elle's Soap Co. pay for inventory purchases during the year?

Answer 1

1	Journal entries
	Date	Account titles and explanation			Debit	Credit
	2017
	Nov 1.	Retained earnings		(90000*1*7)	630000
		Dividend payable				630000
		(Dividend declared)
	Dec 29.	No entry
	2018
	Feb 14.	Dividend payable			630000
		Cash				630000
		(Dividend paid)
2	Beginning balance			78000
	Add: Sales on account			445400
				523400
	Less: Ending balance			54000
	Cash collected from customers			469400
3	Beginning balance			15000
	Add: purchase on account			118000
				133000
	Less: Ending balance			26800
	Cash paid for purchase			106200
4	a. Cash payments of dividends				6100	-	F
	b. Cash payment of inventory				118350	-	O
	c. Cash payment for expenses				3000	-	O
	d. Cash payment for wages				55750	-	O
	e. Cash payment for interest expenses				455	-	O
	f. Cash payment for purchase of equipment				21900	-	I
	g. Cash payment for repayment of debt				18500	-	F
	h. Cash collection of accounts receivable				440000	+	O
	i. Cash collection of interest revenue				7700	+	I
	j. Cash collection of dividend revenue				1600	+	I
	k. Cash proceeds from sale of equipment				18000	+	I
	l. Cash proceeds from sale of common stock				33600	+	F
5	Cash from operating activity
	h. Cash collection of accounts receivable				440000
	b. Cash payment of inventory				-118350
	c. Cash payment for expenses				-3000
	d. Cash payment for wages				-55750
	e. Cash payment for interest expenses				-455
	Net cash provided by operating activities (a)				262445
	Cash from investing activity
	f. Cash payment for purchase of equipment				-21900
	i. Cash collection of interest revenue				7700
	j. Cash collection of dividend revenue				1600
	k. Cash proceeds from sale of equipment				18000
	Net cash provided by investing activities (b)				5400
	Cash from financing activity
	a. Cash payments of dividends				-6100
	g. Cash payment for repayment of debt				-18500
	l. Cash proceeds from sale of common stock				33600
	Net cash provided by fiancing activities ©				9000
	Net change in cash (a+b+c)				276845
	Cash at the beginning of the period				3160
	Cash at the end of the period				280005