Med Labs has the following December 31, 2016, year-end unadjusted balances: Allowance for Sales Discounts

Med Labs has the following December 31, 2016, year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $5,000. Of the $5,000 of receivables, $1,000 are within a 2% discount period, meaning that it expects buyers to take $20 in future-period discounts arising from this period's sales. Prepare the December 31, 2016, year-end adjusting journal entry for future sales discounts. Assume the same facts above and that there is a $5 year-end unadjusted credit balance in the Allowance for Sales Discounts. Prepare the December 31, 2016, year-end adjusting journal entry for future sales discounts. Is the Allowance for Sales Discounts a contra asset or a contra liability account?

Everdeen Mining​, ​Inc., ended 2015 with net profits before taxes of $441,000

Everdeen Mining​, ​Inc., ended 2015 with net profits before taxes of $441,000. The company is subject to a 40% tax rate and must pay $63,900 in preferred stock dividends before distributing any earnings on the 164,000 shares of common stock currently outstanding.

a. Calculate​ Everdeen's 2015 earnings per share​ (EPS).

b. If the firm paid common stock dividends of$0.81 per​ share, how many dollars would go to retained​ earnings?

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