11 & 13

Which of the following changes will be reported in the financing activities section of the statement of cash flows? 1. Declaration and payment of a cash dividend during the period 2. Net income for the period A. Neither 1 or 2 B. 2 C. Both 1 and 2 D. 1

D. 1

Indicate where the event common stock issued for cash would appear, if at all, on the indirect statement of cash flows A. Investing activities section B. Operating activities section C. Does not represent a cash flow D. Financing activities section

D. Financing activities section

If Vickers company issues 4,000 shares of $5 par value common stock for $140,000, A. Paid-in-Capital in Excess of Par will be credited for $20,000 B. Common Stock will be credited for $140,000 C. Cash will be debited $120,000 D. Paid-in-Capital in Excess of Par will be credited for $120,000

D. Paid-in-Capital in Excess of Par will be credited for $120,000

Karl Company was organized on January 2, 2010. During 2013, Karl issued 20,000 shares at $24 per share, purchased 3,000 shares of treasury stock at $26 per share, and had net income of $300,000. What is the total amount of stockholder's equity at December 31, 2013? A. $708,000 B. $702,000 C. $720,000 D. $640,000

B. $702,000

The acquisition of land by issuing common stock is A. a noncash transaction which is not reported in the body of a statement of cash flows B. only reported if the statement of cash flows is prepared using the direct method C. a cash transaction and would be reported in the body of a statement of cash flows D. a noncash transaction and would be reported in the body of a statement of cash flows

A. a noncash transaction which is not reported in the body of a statement of cash flows

A corporation has the following account balances, Common Stock , $1 par value, $60,000; Paid-in-Capital in Excess of Par, $1,300,000. Based upon this information, the A. numbers of shares issued are 60,000 B. legal capital is $1,360,000 C. average price per share issued is $22.50 D. number of shares outstanding is $1,360,000

A. numbers of shares issued are 60,000

The following selected amounts are available for Clark Company Retained Earnings (beginning) $800 Net loss 150 Cash dividends declared 100 Stock dividends declared 100 What is its retained earnings balance? A. $700 B. $450 C. $650 D. $600

B. $450

Jarrett Company issued 600 shares of no-par common stock for $8,000. Which of the following journal entries would be made if the stock had no stated value? A. Cash 8,800 Common Stock 600 PIC in Excess of Stated Value 8,200 B. Cash 8,800 Common Stock 8,800 C. Cash 8,800 Common Stock 600 PIC in Excess of Par 8,200 D. Common Stock 8,800 Cash 8,800

B. Cash 8,800 Common Stock 8,800

The trial balance of Houston Inc. includes the following balances: Common Stock, $28,000; Paid-in-Capital in Excess of Par, $64,000; Treasury Stock, $6,000; Preferred stock, $30,000. Capital Stock totals A. $128,000 B. $96,000 C. $58,000 D. $122,000

C. $58,000

Prior period adjustments are reported in the: A. Income statement B. Balance sheet C. Statement of retained earnings D. Statement of financial statements

C. Statement of retained earnings

The statement of cash flows A. is another name for the income statement B. must be prepared on a daily basis C. summarizes the operating, investing, and financial activities of an entity D. is a special section of the income statement

C. summarizes the operating, investing, and financial activities of an entity

Cooke Corporation issues 10,000 shares of $50 par value preferred stock for cash at $90 per share. The entry to record the transaction will consist of a debit to Cash for $900,000, and a credit or credits to A. Paid-in-Capital from from Preferred stock for $900,000 B. Preferred stock for $900,00 C. Preferred stock for $400,000 and Paid-in-Capital from preferred stock for $500,00 D. Preferred stock for $500,000 and Paid-in-Capital in Excess of Par - Preferred Stock for $400,000

D. Preferred stock for $500,000 and Paid-in-Capital in Excess of Par - Preferred Stock for $400,000

When equipment is sold for cash, the amount received is reflected as a cash A. inflow in the operating system B. outflow in the operating system C. inflow in the financing system D. inflow in the investing system

D. inflow in the investing system