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The company uses the cost method to account for treasury stock 1 On May 1, Hite Corporation purchased 1,000 shares of its $10 par value common stock at a cash price of $13/share. On July 15, 600 shares of the treasury stock were sold for cash at $15/share. Instructions Journalize the two transactions. 2 Werner Corporation has the following stockholders' equity accounts on January 1, 2008: Common Stock, $10 par value ............. ...

Other / Other 05 Apr 2016

Place each of the items listed below in the appropriate subdivision 1 Place each of the items listed below in the appropriate subdivision of the stockholders' equity section of a balance sheet. Common stock, $10 stated value Retained earnings 8% Preferred stock, $100 par value Paid-in capital in excess of par value Paid-in capital in excess of stated value Treasury stock Paid-in capital from treasury stock Stockholders' equity Pa ...

Other / Other 05 Apr 2016

Which of the following adjustments to convert net income to net cash 1. Which of the following adjustments to convert net income to net cash provided by operating activities is correct? Add to Net Income Deduct from Net Income a. Accounts Receivable increase decrease b. Prepaid Expenses increase decrease c. Inventory decrease increase d. Taxes Payable decrease increase 2. Which of the following adjustments to convert net incom ...

Other / Other 05 Apr 2016

Garner Corporation is authorized to issue 1 Garner Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. During 2008, its first year of operation, the company has the following stock transactions. Jan. 1 Paid the state $2,000 for incorporation fees. Jan. 15 Issued 500,000 shares of stock at $7 per share. Jan. 30 Attorneys for the company accepted 500 shares of common stock as payment for legal services rend ...

Other / Other 05 Apr 2016

A corporation's own stock that has been reacquired 1. Par value of stock represents the __________________ per share that must be retained in the business for the protection of corporate ___________________. 2. The stockholders' equity section of a corporation's balance sheet is generally divided in two major sections: (1) _____________ and (2) _______________. 3. If stock is issued in exchange for noncash assets, the assets should be ...

Other / Other 05 Apr 2016

Accounts receivable arising from sales to customers 1. Joy Elle’s Vegetable Market had the following transactions during 2011: 1. Issued $50,000 of par value ordinary shares for cash. 2. Repaid a 6 year note payable in the amount of $22,000. 3. Acquired land by issuing ordinary shares of par value $100,000. 4. Declared and paid a cash dividend of $2,000. 5. Sold a non-current investment (cost $63,000) for cash of $6,000. ...

Other / Other 05 Apr 2016

In preparing net cash flow from operating activities True or false: 1. During the year, Income Tax Expense amounted to $30,000 and Income Taxes Payable increased by $4,000; therefore, the cash paid for income taxes was $26,000. a2. In preparing net cash flow from operating activities using the direct method, each item in the income statement is adjusted from the accrual basis to the cash basis. a3. Using the direct method, major ...

Other / Other 05 Apr 2016

In calculating cash flows from operating activities 1. If accounts receivable have increased during the period, a. revenues on an accrual basis are less than revenues on a cash basis. b. revenues on an accrual basis are greater than revenues on a cash basis. c. revenues on an accrual basis are the same as revenues on a cash basis. d. expenses on an accrual basis are greater than expenses on a cash basis. 2. If accounts payable have ...

Other / Other 05 Apr 2016

When listing accounts in the statement of cash flows 1. LF’s Pest Control Products has the following information available: Net Income $25,000 Cash Provided by Operations 31,000 Cash Sales 65,000 Capital Expenditures 11,000 Dividends Paid 3,000 What is LF’s free cash flow? a. $28,000 b. $20,000 c. $17,000 d. $11,000 2. During 2011, Klugman Industries reported cash provided by operations of €690,000, cash ...

Other / Other 05 Apr 2016

Journalize the purchase and sale of the treasury stock 1 On September 5, Bertolli Corporation acquired 2,500 shares of its own $1 par common stock for $23 per share. On October 15, 1,000 shares of the treasury stock is sold for $25 per share. Instructions Journalize the purchase and sale of the treasury stock assuming that the company uses the cost method. 2 Warren Company had the following transactions. 1. Issued 6,000 shares of ...

Other / Other 05 Apr 2016