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Extra info for Financial and Managerial Accounting (12th Edition)
Exp. Trans, d. +7,500 Trans, e. 2,125 800 Trans, g. 800 _____ ______ _____ _____ Balance, Nov. 30 _____ 7,500 2,125 800 800 ______ _____ _____ _____ ______ _____ _____ 450 275 _____ 450 _____ _____ _____ 275 _____ _____ $3,050 Stockholders’ equity created by investments by stockholders (capital stock) and by business operations (retained earnings) is reported separately. Since dividends are distributions of earnings to stockholders, dividends reduce retained earnings. NetSolutions paid $2,000 in dividends during November, thus reducing retained earnings to $1,050 ($3,050 $2,000).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. © Cengage Learning 2014 Bernie Madoff 6 Chapter 1 Introduction to Accounting and Business Exhibit 4 Accounting Career Track Private Accounting Public Accounting Accounting Career Paths and Salaries Description Accountants employed by companies, government, and not-for-profit entities.
Earned Exp. Exp. Exp. Exp. Exp. Trans, d. +7,500 Trans, e. 2,125 800 Trans, g. 800 _____ ______ _____ _____ Balance, Nov. 30 _____ 7,500 2,125 800 800 ______ _____ _____ _____ ______ _____ _____ 450 275 _____ 450 _____ _____ _____ 275 _____ _____ $3,050 Stockholders’ equity created by investments by stockholders (capital stock) and by business operations (retained earnings) is reported separately. Since dividends are distributions of earnings to stockholders, dividends reduce retained earnings.