Accounting Exam 6 (math)
Austin Corp. reported the following information for 2013 and 2014. Interest receivable, December 31, 2013 $1,100 Interest receivable, December 31, 2014 1,400 Interest income--2014 3,200 How much cash was received for interest during 2014? A. $2,900 B. $3,200 C. $3,500 D. $3,800
A. $2,900
Fitch Company reported an increase of $370,000 in its accounts receivable during the year 2013. The company's statement of cash flows for 2013 reported $1 million of cash received from customers. What amount of net sales must Fitch have recorded in 2013? A. $370,000 B. $1,000,000 C. $1,370,000 D. $630,000
C. $1,370,000
Rock City Company began business on January 1, 2012. The corporate charter authorized issuance of 500 shares of $1 par value common stock and 400 shares of $4 par value, 3% cumulative preferred stock. What is the maximum amount that can be reported on the balance sheet for Common Stock and Preferred Stock, respectively, if all of the stock is issued? Common Stock Preferred Stock A. $ 500 $1,600 B. $ 5,000 $ 120 C. $ 500 $ 120 D. Not enough information provided.
A. $ 500 $1,600
Use the information below for Main Street Corp. for 2013 and 2014 to answer the following question. Retained earnings, December 31, 2013 $300,000 Retained earnings, December 31, 2014 345,000 Dividends payable, December 31, 2013 19,000 Dividends payable, December 31, 2014 29,000 Net income--2012 150,000 How much cash did Main Street pay for dividends during 2014? A. $ 95,000 B. $105,000 C. $115,000 D. $140,000
A. $ 95,000
Phoenix Corp. reported the following information for 2013 and 2014. Interest payable, December 31, 2013 $5,700 Interest payable, December 31, 2014 6,200 Interest expense--2014 12,250 How much cash was paid for interest during 2014? A. $11,750 B. $12,250 C. $12,500 D. $12,750
A. $11,750
Almed Company reported the following information for 2013 and 2014. Prepaid insurance, December 31, 2013 $ 2,400 Prepaid insurance, December 31, 2014 1,500 Insurance expense--2014 14,200 How much cash was paid for insurance during 2014? A. $13,300 B. $14,200 C. $15,100 D. $15,700
A. $13,300
Stein Corp. reported the following information for 2013 and 2014. Accounts payable, December 31, 2013 $ 51,000 Accounts payable, December 31, 2014 46,000 Purchases--2014 467,000 How much cash was paid for merchandise purchases during 2014? A. $421,000 B. $462,000 C. $467,000 D. $472,000
D. $472,000
Watson Company has 5,000 shares of $5 par, 3% preferred stock outstanding, and 25,000 shares of $2 par common stock outstanding. The preferred stock is cumulative and no dividends have been paid for the past two years. If the company wishes to distribute $2 per share to the common stockholders, what is the total amount of dividends that must be paid in the current year? A. $ 2,250 B. $50,000 C. $50,750 D. $52,250
D. $52,250
Manatee Company was incorporated as a new business on January 1, 2012. The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock. On January 1, 2012, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share. Net income for the year ended December 31, 2012, was $375,000. Refer to the information about Manatee Company. Manatee's total stockholders' equity reported on the balance sheet at December 31, 2012, is A. $60,000. B. $120,000. C. $180,000. D. $555,000.
D. $555,000.
Satir Corp. reported the following information for 2013 and 2014. Salaries payable, December 31, 2013 $ 3,700 Salaries payable, December 31, 2014 1,800 Salaries expense--2014 57,000 How much cash was paid for salaries during 2014? A. $55,100 B. $55,200 C. $57,000 D. $58,900
D. $58,900
Roehr Corporation issues 20,000 shares of $0.50 par common stock for $6 per share; the Additional Paid-in Capital--Common account will increase by A. $10,000. B. $110,000. C. $120,000. D. $130,000.
B. $110,000.
Use the incomplete stockholders' equity section of Tokin Company's balance sheet as of December 31, 2012, to answer the following question: Common stock, $7 par, 100,000 shares authorized $700,000 Additional paid-in capital--common 160,000 Retained earnings ? Treasury stock (2,000 shares at cost) (16,000) Total stockholders' equity 974,000 What is the amount of Tokin's retained earnings? A. $130,000 B. $ 98,000 C. $860,000 D. $114,000
A. $130,000
On January 1, 2012, Sandy Shores Company issued 10,000 shares of 10%, $20 par value cumulative preferred stock. In 2012 and 2013, no dividends were declared on preferred stock. In 2014, Sandy Shores had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. If they have $200,000 available for dividends in 2014, how much could it pay to the common stockholders? A. $140,000 B. $160,000 C. $180,000 D. $200,000
A. $140,000
The following items were reported on the balance sheets and income statement for Oxford Inc., a service company: Accounts payable, December 31, 2013 $ 64,000 Accounts payable, December 31, 2014 48,000 Operating expenses -- 2014 170,000 What amount would be reported in the operating activities section of the statement of cash flows for payments for operating expenses under the direct method? A. $186,000 B. $154,000 C. $180,000 D. $170,000
A. $186,000
Below are the transactions for Jacksonville Company: Proceeds from issuance of bonds payable $635,000 Payment to purchase equipment $275,000 Payment of wages $115,000 Payment of dividends $155,000 Payment to pay off notes payable $195,000 Based on these transactions, what is the net cash flow from financing activities? A. $285,000 net cash provided by financing activities. B. $275,000 net cash used for financing activities. C. $0, because cash inflows equal cash outflows from financing activities. D. $440,000 net cash provided by financing activities.
A. $285,000 net cash provided by financing activities.
Gaulle Company began the year with a balance of $6,000 in Accounts Receivable and ended the year with $9,000 in the account. Revenues for the period amounted to $38,000. Under the direct method, Gaulle will report cash collected from customers of: A. $44,000 B. $35,000 C. $41,000 D. $47,000
B. $35,000
The balance of the $0.50 par value Common Stock account for Murdock Company was $60,000 before its recent 3-for-1 stock split. The market price of the stock was $30 per share before the stock split. What occurred as a result of the stock split? A. The balance in the Retained Earnings account decreased. B. The balance in the Common Stock account declined to $20,000. C. The market price of the stock was not affected. D. The market price of the stock dropped to approximately $10 per share.
D. The market price of the stock dropped to approximately $10 per share.
The stockholders' equity section of Wild Weaver's balance sheet on January 1, 2012, appeared as follows: Common stock, $2 par, 2,000 shares issued and outstanding $ 4,000 Additional paid-in capital - Common 1,600 Retained earnings 5,400 Total stockholders' equity $11,000 On March 1, 2012, Wild Weaver reacquired 800 shares of common stock at $10 per share. Wild Weaver sold 400 of the treasury shares on November 15 for $12 per share. The entry to record the sale on November 15 would show: A. an increase in Gain on Sale of Treasury Stock, $800 B. an increase in Common Stock, $4,800 C. a decrease in Cash, $4,800 D. a decrease in Treasury Stock, $4,000
D. a decrease in Treasury Stock, $4,000
CarWorks Company has 100,000 authorized shares of $4 par common stock. The company issued 40,000 shares at $8. Subsequently, CarWorks declared a 2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend? A. $8,800 B. $4,800 C. $3,200 D. $6,400
A. $8,800
Monticello Company reported the following information in its annual report for 2012. Cash flows from operating activities $300,000 Capital Expenditures 225,000 Average amount of debt maturing over the next 5 years 200,000 What is the cash flow adequacy ratio for 2012 for Monticello Company? A. 0.38 B. 1.50 C. 1.88 D. 7.50
A. 0.38
Fashion Company reported the following: Common stock, $3 par, 10,000 shares authorized, 5,000 shares issued and outstanding What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the dividend is declared? A. Retained earnings in the amount of $15,000 is transferred to the contributed capital accounts. B. Cash decreases $30,000. C. Additional Paid-in Capital decreases $30,000. D. A stock dividend has no effect on any stockholders' equity accounts.
A. Retained earnings in the amount of $15,000 is transferred to the contributed capital accounts.
Vegan Company reported the following: Common stock, $5 par, 200,000 shares authorized, 50,000 shares issued and outstanding What is the effect of issuing 2,000 shares of common stock in exchange for land with valued by a realtor at $36,000 if the common stock sells for $12 per share and is regularly traded? A. The Land account increases by $24,000. B. Retained Earnings decreases by $10,000. C. Common Stock increases by $36,000. D. Additional Paid-in Capital - Common increases by $24,000.
A. The Land account increases by $24,000.
Kiwi Charters reported the following information at December 31, 2013: Preferred stock, $100 par, 500 shares authorized, and outstanding; cumulative; nonparticipating; callable at par value $ 50,000 Common stock, $12 par, 50,000 shares authorized and outstanding 600,000 Additional paid-in capital--Common 25,000 Retained earnings 825,000 Kiwi's total contributed capital is A. $ 650,000 B. $ 675,000 C. $1,500,000 D. $ 625,000
B. $ 675,000
Use the information below for Main Street Corp. for 2013 and 2014 to answer the following question. Retained earnings, December 31, 2013 $300,000 Retained earnings, December 31, 2014 345,000 Dividends payable, December 31, 2013 19,000 Dividends payable, December 31, 2014 29,000 Net income--2014 150,000 Assume that there were no retained earnings transactions other than those dealing with dividends and net income. How much dividends did Main Street declare during 2014? A. $ 95,000 B. $105,000 C. $140,000 D. $150,000
B. $105,000
Use the information below for Oakland Inc. for 2013 and 2014 to answer the following question. Equipment, December 31, 2013 $65,000 Equipment, December 31, 2014 72,000 Accumulated depreciation, December 31, 2013 39,000 Accumulated depreciation, December 31, 2014 30,000 During 2014, Oakland Inc. sold equipment with a cost of $30,000 and accumulated depreciation of $25,000. A gain of $3,000 was recognized on the sale of the equipment This was the only equipment sale during the year. What was depreciation expense for 2014? A. $ 9,000 B. $16,000 C. $21,000 D. $30,000
B. $16,000
In 2013, Daytona Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000. In its statement of cash flows for 2013, Daytona should report the following with respect to the above transactions: A. $363,000 cash used by operating activities; $182,000 cash provided by financing activities. B. $181,000 net cash used by investing activities. C. $181,000 net cash used by investing activities; $27,000 net cash provided by operating activities. D. $363,000 net cash used by investing activities.
B. $181,000 net cash used by investing activities.
Rent expense in Volusia Company's 2014 income statement is $420,000. If Prepaid Rent was $70,000 at December 31, 2013, and is $95,000 at December 31, 2014, the cash paid for rent during 2014 is: A. $480,000 B. $445,000 C. $395,000 D. $420,000
B. $445,000
In 2012, Taggert Company had a beginning balance in its Cash Dividend Payable account of $5,000 and an ending balance of $4,000. During 2012, the only dividends Taggert declared were $46,000 in cash to the common stockholders. How much cash was paid to the common stockholders? A. $45,000 B. $47,000 C. $46,000 D. $ 1,000
B. $47,000
The following items were reported on the balance sheets and income statement for Kensington Co.: Accounts receivable, December 31, 2013 $185,000 Accounts receivable, December 31, 2014 178,000 Sales -- 2014 850,000 What amount would be reported in the operating activities section of the statement of cash flows for collections from customers under the direct method assuming that all sales are on credit? A. $850,000 B. $857,000 C. $843,000 D. Cannot be determined without further information.
B. $857,000
Miramar Corporation reported the following in the stockholders' equity section of its balance sheet at December 31, 2012: Common stock, $1 stated value $10,000 Additional paid-in capital - common 40,000 Retained earnings 25,000 Total contributed capital and retained earnings $75,000 Less: Treasury stock (at cost $20 per share) (2,000) Total stockholders' equity $73,000 How many shares of stock are issued? A. 9,000 B. 10,000 C. 10,100 D. Not enough information to determine.
B. 10,000
Kiwi Charters reported the following information at December 31, 2012: Preferred stock, $10 par, 5,000 shares authorized, cumulative $ 50,000 Common stock, $1 par, 500,000 shares authorized 100,000 Additional paid-in capital - Common 25,000 Retained earnings 75,000 Total contributed capital and retained earnings $250,000 Less: Treasury stock (400 shares at cost) 5,000 Total stockholders' equity $245,000 The number of shares of common stock issued is A. 10,000. B. 100,000. C. 500,000. D. 550,000.
B. 100,000.
Use the incomplete stockholders' equity section of Tokin Company's balance sheet as of December 31, 2012, to answer the following question. Common stock, $7 par, 100,000 shares authorized $700,000 Additional paid-in capital--common 160,000 Retained earnings ? Treasury stock (2,000 shares at cost) (16,000) Total stockholders' equity 974,000 How many shares of common stock are outstanding? A. 100,000 B. 98,000 C. 78,000 D. 68,000
B. 98,000
Alberto's Texas Cantina had the following results for December 31, 2013 and 2014, respectively: 2013, 2014 Cash $ 42,000, $ 49,000 Noncash current assets 162,000, 175,000 Cash flows from financing activities --, 313,000 Cash flows from operating activities --, 72,000 What was the amount of cash flows from investing activities for 2014? A. Cash inflow of $378,000 B. Cash outflow of $378,000 C. Cash outflow of $7,000 D. Cash outflow of $391,000
B. Cash outflow of $378,000
Valor Company issued 5,000 shares of $1 par common stock for $30 per share, providing the company with $150,000 in cash. What effect, in addition to the increase in cash, does this transaction have on the accounting equation for Valor? A. Common Stock increases $150,000. B. Common Stock increases $5,000; Additional Paid-in Capital - Common increases $145,000. C. Common Stock increases $5,000; Retained Earnings increases $145,000. D. Common Stock increases $5,000; Gain on Sale of Common Stock increases $145,000.
B. Common Stock increases $5,000; Additional Paid-in Capital - Common increases $145,000.
Debbie and Alex formed a new partnership. The partnership agreement specified that income should be allocated in a 2-to-1 ratio, with Debbie receiving the larger portion. If revenue for the first year was $90,000 and expenses were $60,000, how much would be allocated to each partner? A. Debbie - $45,000; Alex - $45,000 B. Debbie - $20,000; Alex - $10,000 C. Debbie - $60,000; Alex - $30,000 D. Debbie - $40,000; Alex - $20,000
B. Debbie - $20,000; Alex - $10,000
Yen Co. reported the following information at the end of 2013 and 2014: 2013, 2014 Land $ 35,000, $ 100,000 Common stock 200,000, 265,000 An analysis of Yen's records indicated that there were no cash flow effects resulting from the changes in the two accounts presented above. How should Yen report the changes in these accounts on a statement of cash flows? A. Yen should report $65,000 for the acquisition of land as an investing activity and $65,000 for the issuance of stock as a financing activity. B. Yen should report $65,000 as a noncash investing and financing activity for the acquisition of land by issuing common stock. C. Yen should report the issuance of common stock to acquire land in the financing activity section with a net cash flow effect of zero. D. Yen should report the acquisition of land by issuing common stock in the investing activity section with a net cash flow effect of zero
B. Yen should report $65,000 as a noncash investing and financing activity for the acquisition of land by issuing common stock.
Washington Corp. reported the following information for 2013 and 2014. 2013, 2014 Accounts receivable $101,000, $93,000 Prepaid expenses 5,000, 6,000 Accounts payable 71,000, 76,000 Salaries payable 5,000, 4,000 Net income ---, 80,000 Depreciation expense ---, 9,000 Gain on sale of equipment ---, 5,000 If Washington uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2014? A. $ 73,000 B. $ 83,000 C. $ 95,000 D. $105,000
C. $ 95,000
Kiwi Charters reported the following information at December 31, 2012: Common stock, $1 par, 500,000 shares authorized, 100,000 shares issued 100,000 Additional paid-in capital - Common 25,000 Retained earnings 75,000 Total stockholders' equity $250,000 The average recorded value per share of common stock at December 31, 2012 is A. $1.00 B. $1.75 C. $1.25 D. $2.50
C. $1.25
Manatee Company was incorporated as a new business on January 1, 2012. The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock. On January 1, 2012, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share. Net income for the year ended December 31, 2012, was $375,000. Refer to the information about Manatee Company. The amount of Manatee's total contributed capital at December 31, 2012, is A. $60,000. B. $120,000. C. $180,000. D. $555,000.
C. $180,000.
Fairchild Company acquired a building valued at $210,000 for property tax purposes in exchange for 6,000 shares of its $10 par common stock. The stock is widely traded and selling for $31 per share. At what amount should the building be recorded by Fairchild Company? A. $210,000 B. $60,000 C. $186,000 D. $150,000
C. $186,000
The Stockholders' Equity section of the balance sheet of Sea Turtle Company reveals the following information: Common stock, $3 par value $150,000 Additional paid-in capital--common 850,000 There have been two issues of stock since the corporation began business. The average issue price per share of stock was A. $ 3.00. B. $17.00. C. $20.00. D. Not enough information to determine.
C. $20.00.
The Stockholders' Equity section of Snack, Inc.'s balance sheet on January 1, 2012, appeared as follows: Common stock, $30 par, 20,000 shares issued and outstanding $ 600,000 Additional paid-in capital--Common 240,000 Retained earnings 700,000 Total stockholders' equity $1,540,000 On March 1, 2012, Snack reacquired 4,000 shares of common stock at $50 per share. All common shares were originally sold for $42 each. How much should be reported in the treasury stock account on the March 31, 2012 balance sheet? A. $ 128,000 B. $ 168,000 C. $200,000 D. $32,000
C. $200,000
Use the information below for Oakland Inc. for 2013 and 2014 to answer the following question. Equipment, December 31, 2013 $65,000 Equipment, December 31, 2014 72,000 Accumulated depreciation, December 31, 2013 39,000 Accumulated depreciation, December 31, 2014 30,000 During 2014, Oakland Inc. sold equipment with a cost of $30,000 and accumulated depreciation of $25,000. A gain of $3,000 was recognized on the sale of the equipment This was the only equipment sale during the year. Assume that all purchases of equipment were paid with cash. How much cash was paid by Oakland for the purchase of equipment during 2014? A. $ 7,000 B. $30,000 C. $37,000 D. $72,000
C. $37,000
Use the information below for Fargo Corp. for 2013 and 2014 to answer the following question. Bonds payable, December 31, 2013 $500,000 Bonds payable, December 31, 2014 800,000 Loss on bond retirement--2014 15,000 Interest expense on bonds--2014 45,000 At the end of 2014, Fargo issued bonds at par value for $800,000 cash. The proceeds from these bonds were used to retire the $500,000 bond issue outstanding at the end of 2013 (before their maturity date). All interest expense was paid in cash during 2014. How much did Fargo pay to retire the $500,000 bond issue during 2014? A. $485,000 B. $500,000 C. $515,000 D. $560,000
C. $515,000
The stockholders' equity section of the balance sheet for Front Page News Corporation appeared as follows before its recent stock dividend: Common stock, $5 par, 100,000 shares issued and outstanding $ 500,000 Additional paid-in capital 100,000 Retained earnings 725,000 Total stockholders' equity $1,325,000 Front Page declared a 10% stock dividend when the market price per share was $8. After the stock dividend was distributed, the components of the stockholders' equity section were: Common Stock, Add'l. Paid-in Capital, Retained Earnings A. $580,000, $100,000, $645,000 B. $550,000, $100,000, $675,000 C. $550,000, $130,000, $645,000 D. There would be no change in the components of stockholders' equity.
C. $550,000, $130,000, $645,000
The statement of stockholders' equity for Jutras Corporation shows an increase in the Common Stock account of $8,000, an increase in Additional Paid-in Capital--Common in the amount of $22,000, and an increase in Retained Earnings of $50,000. If the stock has a par value of $3 and dividends of $10,000 were declared and paid during the year, what is the amount of net income for the year? A. $40,000 B. $50,000 C. $60,000 D. $90,000
C. $60,000
Mallick Corp. reported the following information for 2013 and 2014. Accounts receivable, December 31, 2013 $ 67,000 Accounts receivable, December 31, 2014 63,000 Sales (all on credit) -- 2014 745,000 How much cash was collected from customers during 2014? A. $741,000 B. $745,000 C. $749,000 D. $753,000
C. $749,000
Tropic Vending, a sole proprietorship, had the following balances and transactions during 2013: beginning capital, $40,000; contribution of cash to the business by the owner, $15,000; revenue, $60,000; expenses, $35,000; withdrawal by the owner, $5,000. What is the amount of the ending capital balance? A. $40,000 B. $60,000 C. $75,000 D. $85,000
C. $75,000
At the end of the first year of operations, the balance sheet of West Palm Beach Industries had the following balances: Accounts Receivable, $5,000; Accounts Payable, $6,000; Inventory, $3,000; and Unexpired Insurance, $2,000. The corporation reported net income of $79,000 for the year, including depreciation expense of $5,000, and uses the indirect method of computing net cash flow from operating activities. Based on this information, net cash flow from operating activities is: A. $82,000 B. $78,000 C. $80,000 D. $77,000
C. $80,000
Dino's Italian Grille purchased $6,000 of napkins for its business. One-fourth of the bill is unpaid. Upon review of the napkins still on hand, 20% were still available. What combination of amounts would affect the income statement and statement of cash flows? Statement of Cash Flow, Income Statement A. ($6,000), ($6,000) B. ($4,500), ($6,000) C. ($4,500), ($4,800) D. ($6,000), ($4,800)
C. ($4,500), ($4,800)
Vegas Finance Company reported the following: Common stock, $10 par, 100,000 shares authorized, 80,000 shares issued and outstanding What is the effect of issuing 1,000 shares of common stock at $15 per share? A. Cash increases $10,000. B. Common Stock increases $15,000. C. Additional Paid-in Capital increases $5,000. D. Retained Earnings increases $5,000.
C. Additional Paid-in Capital increases $5,000.
Garden Company began business on January 1, 2012. The corporate charter authorized issuance of 5,000 shares of $1 par value common stock, and 4,000 shares of $8 par value, 6% cumulative preferred stock. None of the preferred shares were issued. On July 1, Garden issued 1,000 shares of common stock in exchange for two years rent on a retail location. The cash rental price is $2,400 per month and the rental period begins on July 1. The correct entry to record the July 1 transaction will A. Increase Cash, $57,600; Decrease Prepaid Rent, $57,600 B. Increase Prepaid Rent, $57,600; Increase Common Stock, $57,600 C. Increase Prepaid Rent, $57,600; Increase Common Stock, $1,000; Increase Additional Paid-in Capital--Common, $56,600 D. Increase Prepaid Rent, $57,600; Increase Common Stock, $5,000; Increase Additional Paid-in Capital--Common, $52,600
C. Increase Prepaid Rent, $57,600; Increase Common Stock, $1,000; Increase Additional Paid-in Capital--Common, $56,600
Penny's Cafe began operations on March 1, 2012. The corporate charter authorized the issuance of 3,000 shares of $2 par value common stock and 1,000 shares of $3 par value, 8% cumulative preferred stock. The company's fiscal year ends on February 28. Penny's sold 500 shares of common stock at $6 per share on April 1. What impact does the entry to record the April 1 transaction have on total stockholders' equity? A. No effect B. Increase by $1,000 C. Increase by $3,000 D. Increase by $6,000
C. Increase by $3,000
Pustay Parts Shop began business on January 1, 2012. The corporate charter authorized issuance of 10,000 shares of $2 par value common stock and 4,000 shares of $8 par value, 6% cumulative preferred stock. Pustay issued 2,400 shares of common stock for cash at $20 per share on January 2, 2012. What effect does the entry to record the issuance of stock have on total stockholders' equity? A. Increase of $4,800 B. Decrease of $4,800 C. Increase of $48,000 D. Decrease of $48,000
C. Increase of $48,000
Melo's purchased a $25,000 truck for catering from its restaurant. It made a down payment of one-fourth of the price. What combination of amounts would affect the income statement and statement of cash flows for the purchase of the truck? Statement of Income, Cash Flow Statement A. $ -0-, $25,000 B. ($25,000), $ -0- C. ($ 6,250), $25,000 D. ($ 6,250), $ -0-
D. ($ 6,250), $ -0-
A company issued 4,000 shares of $5 par common stock for $30 per share. The company purchased 1,200 shares as treasury stock at $32 per share. Later, the company reissued 400 shares of the treasury stock at $34 per share. Which of the following is true? A. The Treasury Stock account should have a balance of $24,800. B. The company has a gain of $800 that should appear on the income statement. C. The Treasury Stock account should have a balance of $25,600. D. The company has a gain of $1,600 that should appear on the income statement.
C. The Treasury Stock account should have a balance of $25,600.
Arizona Inc. reported the following information for 2013 and 2014. 2013, 2014 Accounts receivable $51,000, $57,000 Inventories 42,000, 39,000 Accounts payable 43,000, 48,000 Net income ---, 60,000 Depreciation expense ---, 8,000 If Arizona uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2014? A. $64,000 B. $66,000 C. $68,000 D. $70,000
D. $70,000
Use the information below for Oakland Inc.. for 2013 and 2014 to answer the following question. Equipment, December 31, 2013 $65,000 Equipment, December 31, 2014 72,000 Accumulated depreciation, December 31, 2013 39,000 Accumulated depreciation, December 31, 2014 30,000 During 2014, Oakland Inc. sold equipment with a cost of $30,000 and accumulated depreciation of $25,000. A gain of $3,000 was recognized on the sale of the equipment This was the only equipment sale during the year. What amount would be reported as the cash proceeds from the sale of equipment? A. $2,000 B. $3,000 C. $5,000 D. $8,000
D. $8,000
O'Bryan Company began the year with a balance of $18,000 in Salaries and Wages Payable and ended the year with $11,000 in the account. Salaries and Wages Expense for the period amounted to $91,000. Under the direct method, O'Bryan will report cash payments for salaries and wages of: A. $84,000 B. $102,000 C. $109,000 D. $98,000
D. $98,000
Manatee Company was incorporated as a new business on January 1, 2012. The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock. On January 1, 2012, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share. Net income for the year ended December 31, 2012, was $375,000. Refer to the information about Manatee Company. The number of Manatee's unissued shares of common stock at December 31, 2012, is A. 6,000. B. 8,000. C. 10,000. D. 12,000.
D. 12,000.
Dali Company has 15,000 shares of stock authorized at January 1. Dali issues 4,500 shares to the stockholders during the year and then the company repurchases 1,500 shares as treasury stock. Based on this information, how many shares are outstanding at December 31? A. 15,000 B. 18,000 C. 4,500 D. 3,000
D. 3,000
Walton Corporation shows the following in the stockholders' equity section of its balance sheet: The stated value of its common stock is $0.50 and the total balance in the common stock account is $37,500. Also noted is that 5,000 shares are currently designated as treasury stock. The number of shares outstanding is A. 80,000. B. 75,000. C. 72,500. D. 70,000.
D. 70,000.
A new company issues 2,000 shares of $5 par common stock in exchange for the services of a lawyer during its first month of business. The lawyer's normal fee is $15,000 for similar work. Which of the following would be recorded if the stock is not currently trading? A. A decrease in Common Stock for $10,000 B. An increase in Common Stock for $15,000 C. A decrease in Additional Paid-In Capital--Common Stock of $5,000 D. An increase in Additional Paid-In Capital--Common Stock of $5,000
D. An increase in Additional Paid-In Capital--Common Stock of $5,000
Museum Corporation acquired a new manufacturing building by issuing 10,000 shares of its $50 par value preferred stock with a $75 per share market price. Similar buildings have recently cost $780,000. What are the effects of this transaction on the accounting equation for Museum? A. Building and Preferred Stock increase $780,000 B. Building and Preferred Stock increase $500,000 C. Building increases $780,000; Preferred Stock increases $500,000; Additional Paid-in Capital--Preferred increases $280,000 D. Building increases $750,000; Preferred Stock increases $500,000; Additional Paid-in Capital--Preferred increases $250,000
D. Building increases $750,000; Preferred Stock increases $500,000; Additional Paid-in Capital--Preferred increases $250,000
Island Breeze Cafe began business on January 1, 2012. The corporate charter authorized issuance of 1,000 shares of no-par value common stock, of which 200 shares were issued, and 4,000 shares of $8 par value, 6% cumulative preferred stock, of which none were issued. Island Breeze sold 400 shares of common stock at $8 per share on May 1. The entry to record the issuance of the shares on May 1 will: A. Increase Cash, $1,000; Increase Additional Paid-in Capital--Common, $320; Increase Common Stock, $680 B. Increase Cash, $3,200; Increase Additional Paid-in Capital--Common, $2,800; Increase Common Stock, $400 C. Increase Cash, $4,800; Increase Common Stock, $4,800 D. Increase Cash, $3,200; Increase Common Stock, $3,200
D. Increase Cash, $3,200; Increase Common Stock, $3,200
