Recent Question

Ordinary shares are issued for cash at an amount 1 Assuming a statement of cash flows is prepared, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the statement of cash flows. Code Cash Flows From Operating Activities Add to Net Income A Deduct from Net Income D Cash Flo ...

Other / Other 06 Apr 2016

The number of shares of common stock outstanding 1 1. Name at least three factors that influence the market value of stock. 2. Corporations acquire treasury stock for a variety of purposes. Name three reasons why treasury stock may be acquired by a corporation. 2 The following items were shown on the balance sheet of Herman Corporation on December 31, 2008: Stockholders’ Equity Paid-In Capital Capital Stock Common s ...

Other / Other 05 Apr 2016

Prepare journal entries to record these stock 1 On January 1, 2008, Edmond Company issued 30,000 shares of $2 par value common stock for $150,000. On March 1, 2008, the company purchased 4,000 shares of its common stock for $8 per share for the treasury. On June 1, 2008, 1,000 of the treasury shares are sold for $10 per share. On September 1, 2008, 2,000 treasury shares are sold at $6 per share. Instructions Journalize the stock tra ...

Other / Other 05 Apr 2016

Which of the following transactions does not affect cash 1. Of the items below, the one that appears first on the statement of cash flows is a. non-cash investing and financing activities. b. net increase (decrease) in cash. c. cash at the end of the period. d. cash at the beginning of the period. 2. Which of the following transactions does not affect cash during a period? a. Write-off of an uncollectible account b. Collection ...

Other / Other 05 Apr 2016

Compute the book value per share 1 On December 31, 2008, Colaw Company reports the following amounts in its stockholders' equity section: Common stock $2,400,000 Paid-in capital in excess of stated value—common 900,000 Retained earnings 1,180,000 Treasury stock—common 180,000 The common stock has a stated value of $10 per share. One million shares of common stock are authorized and 40,000 shares are held in the treas ...

Other / Other 05 Apr 2016

Bellingham Corporation has the following stockholders’ equity 1 On February 1, Burchess Corporation issued 4,000 shares of its $20 par value preferred stock for $24 per share. Instructions Journalize the transaction. 2 Bellingham Corporation has the following stockholders’ equity balances at December 31, 2008: Common Stock, $1 par $ 3,500 Paid-in Capital in Excess of Par 24,500 Retained Earnings 62,500 Total $90, ...

Other / Other 05 Apr 2016

Marsh Company has other operating expenses 1. Which of the following would not appear in the operating activities section of a statement of cash flows prepared under the direct method? a. Cash receipts from customers b. Cash paid for income taxes c. Gain on sale of equipment d. Cash paid to employees 2. The cost of goods sold during the year was ¥1,850,000. Merchandise inventory decreased by ¥60,000 during the year and accoun ...

Other / Other 05 Apr 2016

The acquisition of a building by issuing bonds True or false: 1. The acquisition of a building by issuing bonds would be considered an investing and financing activity that did not affect cash. 2. All major financing and investing activities affect cash. 3. Cash provided by operations is generally equal to operating income. 4. Using the indirect method, an increase in accounts receivable during a period is deducted from net i ...

Other / Other 05 Apr 2016

Land acquired from the issuance of ordinary shares 1. On the statement of cash flows using the indirect method, patent amortization expense will a. be added to net income in the operating section. b. be deducted from net income in the operating section. c. appear as an inflow of cash in the investing section. d. appear as an outflow of cash in the investing section. 2. The indirect and direct methods of preparing the statement of c ...

Other / Other 05 Apr 2016

Preferred stock has contractual provisions 1. Preferred stock has contractual provisions that give it a preference over common stock as to ___________________ and to ___________________ in the event of liquidation. 2. The paid-in capital section of the balance sheet consists of two classifications: ______________________ and ______________________. 3. Book value per share represents the equity a common stockholder has in the _________ ...

Other / Other 05 Apr 2016