A.

Prepare entries
Date Account Titles & Explanation DEBIT CREDIT
Apr-01 Cash $ 99,000
Common Stock $ 99,000
Jun-15 Cash Dividend $ 103,500
Dividend Payable $ 103,500
Jul-10 Dividen Payable $ 103,500
Cash $ 103.500
Dec-01 Cash $ 48,000
Common Stock $ 48,000
Dec-15 Cash Dividend $ 116,800
Dividend Payable $ 116,800
B. Where Dividend & Dividend Payble will be place Financial Statement?
Dividend & Dividend Payable will be reported in the retained earnings statement, dividends of $220,300 will be ded
sheet, Dividends Payable of $116.800 will be reported as a current liability.

`
nds of $220,300 will be deducted. In the balance
 Before Action After Stock Dividend After Stock Split
Stockholder's Equity
Paid in Capital
Common Stock 648,000 648,000 648,000
In excess of par value - - -
Total Paid 648,000 648,000 648,000
Retained Earning 400,000 367,600 400,000
Total Stockholder's Equity 1,048,000 1,015,600 1,048,000
Outstanding Share 81,000 162,000
Book Value Per Share $ 8 $ 4

(1) 81.000 * 5% = 4.050 new shares issue $8 par value

4.050 * $8 = $32.400 retained earning / cash
4.050 * $8 = $32.400 common stock

jurnal debit credit

Retained Earning $ 32,400
Common Stock $ 32,400

(2) 81.000 * 2 = 162.000

Indirect Method
RAMOS COORPORATION
Statement of Cash Flows
For the year ended Desember 31st, 2014
Cash Flow from operating activities
Net income $ 284,100
Income tax payable $ 4,700
profit before tax $ 288,800 $ 288,800
Adjustment to reconcile profit to net
Cash Flow from operating activities
Depreciation expense $ 162,000
Decrease in Account Payable $ (3,700)
Increase in account receivable $ (8,200)
Increase in inventory $ (11,000)
Net cash provide by operating $ 139,100
Cash Flow from investing activities
increase sale land on book value $ 35,000
Puchase building $ (289,000)
Net cash used by investing $ (254,000)
Cash Flow from financing activities
Cash paid for dividends $ (12,000)
Purchase treasury stock $ (26,000)
Cash received from Issuing bonds $ 200,000
Net cash provide by financing $ 162,000
$ 335,900