ACCT 202 EXAM 3

Joan's Vegetable Market had the following transactions during 2013: 1. Issued $50,000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $22,000. 3. Acquired land by issuing common stock of par value $100,000. 4. Declared and paid a cash dividend of $2,000. 5. Sold a long-term investment (cost $63,000) for cash of $6,000. 6. Acquired an investment in IBM stock for cash of $12,000. What is the net cash provided used by investing activities?

$6,000

In Numar Company, Treasury Stock increased $25,000 from a cash purchase, and Retained Earnings increased $75,000 as a result of net income of $120,000 and cash dividends paid of $45,000. Net cash used by financing activities is:

$70,000

Last Inc., has 2,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2012. The board of directors declared and paid a $4,000 dividend in 2012. In 2013, $24,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2013?

$8,000

The following data is available for Blaine Corporation at December 31, 2013: Common stock, par $10 (authorized 25,000 shares) $200,000 Treasury Stock (at cost $15 per share) 900 Based on the data, how many shares of common stock are outstanding?

19,940

The acquisition of land by issuing common stock is?

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

Which one of the following items is not generally used in preparing a statement of cash flows?

adjusted trail balance

On January 1, Collins Corporation had 800,000 shares of $10 par value common stock outstanding. On March 31, the company declared a 15% stock dividend. Market value of the stock was $15/share. As a result of this event,

all of these answers are correct

Which one of the following is not necessary in order for a corporation to pay a cash dividend?

approval of stockholders

When preferred stock is cumulative, preferred dividend not declared in a period are?

called dividends in arrears

Jarrett Company issued 600 shares of no-par common stock for $8,800. Which of the following journal entries would be made if the stock has no stated value?

cash: 8,800 common stock: 8,800

If a corporation has only one class of stock, it is referred to as?

common stock

When stock dividend are distributed,

common stock dividend distributable is decreased

Carson Packaging Corporation began business in 2013 by issuing 25,000 shares of $3 par common stock for $8 per share and 10,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $12. On its December 31, 2013 balance sheet, Carson Packaging would report?

common stock of $75,000

Treasury stock is a(n)?

contra stockholders' equity account

Five thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The entry to record this transaction will include a?

credit to paid-in capital from treasury stock for $30,000

Dividends payable is classified as a?

current liability

The date on which a cash dividend becomes a binding legal obligation is on the?

declaration date

In converting net income to net cash provided by operating activities, under the indirect method:

decreases in inventory and increases in accrued liabilities are added

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is?

deducted from net income

If stock is issued for a non cash asset, the asset should be recorded on the books of the corporation at?

fair value

If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at?

fair value

On the dividend record date,

no entry is required

Cash receipts from interest and dividends are classified as?

operating activities

Generally, the most important category on the statement of cash flows is cash flows from?

operating activities

The order of presentation of activities on the statement of cash flows is?

operating, investing, and financing

Ralston Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Ralston issues 6,000 shares of common stock to pay its recent attorney's bill of $25,000 for legal services on starting up the company, which of the following would be the journal entry for Ralston to record this transaction?

organizational expense: 25,000 common stock: 6,000 paid-in capital in excess of stated value-common: 19,000

The primary purpose of the statement of cash flows is to provide information about a company's?

provide information about the cash receipts and cash payments during a period

Stockholders of a corporation directly elect?

the board of directors

Which of the following is not a right or preference associated with preferred stock?

the right to vote

Which one of the following is not an ownership right of a stockholder in a corporation?

to declare dividends on the common stock

If a gain of $15,000 is incurred in selling (for cash) office equipment having a book value of $100,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is?

$115,000

New Corp. issues 2,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, the corporation will have legal capital of?

$20,000

Vega Corporation's December 31, 2013 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 15,000 shares authorized; 10,000 shares issued $ 200,000 Common stock, $10 par value, 1,000,000 shares authorized; 975,000 shares issued, 960,000 shares outstanding 9,750,000 Paid-in capital in excess of par—preferred stock 30,000 Paid-in capital in excess of par—common stock 13,500,000 Retained earnings 3,750,000 Treasury stock (15,000 shares) 315,000 Vega's total paid-in capital was?

$23,480,000

The following data are available for Simpson Corporation. Net income $300,000 Depreciation expense 60,000 Dividends paid 90,000 Gain on sale of land 15,000 Decrease in accounts receivable 30,000 Decrease in accounts payable 45,000 Net cash provided by operating activities is:

$330,000

Karl Corporation was organized on January 2, 2013. During 2013, Karl issued 20,000 shares at $24 per share. On February 15, 2013 Karl purchased 3,000 shares of treasury stock at $26 per share. On March 1, 2013 the corporation sold 1,000 shares of the Treasury Stock for $30 per share. After the sale of the Treasury Stock, what is the balance in the Paid-in-Capital Treasury Stock account and the number of shares outstanding?

$4,000 and 18,000 shares