Info
Warning
Danger

Study Resources (Accounting)

MATCHING 258.Match the items below by entering the appropriate code letter in the space provided. A.ControllerF.Preemptive right B.DeficitG.Par value C.Payout ratioH.Legal capital D.Stock dividendI.Treasury stock E.Declaration dateJ.Cumulative feature ____              1.The date the board of directors formally declares a dividend. ____              2.The amount that must be retained in the business for the protection of creditors. ____              3.Preferred stockholders have a.
7 Views
View Answer
Ex. 230 The stockholders' equity section of Patrick Corporation's balance sheet at December 31 is presented here: PATRICK CORPORATION Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding$   300,000 Common stock, no par, 750,000 shares authorized, 600,000 shares issued  3,000,000 Total paid-in capital3,300,000 Retained earnings  1,358,000 Total paid-in capital and retained earnings4,658,000 Less: Treasury.
7 Views
View Answer
Ex. 229 The stockholders’ equity section of Piper Corporation’s balance sheet at December 31, 2011, appears below: Stockholders’ equity Paid-in capital Common stock, $10 par value, 400,000 shares authorized;    300,000 issued and outstanding$3,000,000 Paid-in capital in excess of par  1,200,000 Total paid-in capital4,200,000 Retained earnings     900,000 Total stockholders’ equity$5,100,000 Ex. 229(Cont.) During 2012, the following stock transactions occurred: Jan.18Issued 60,000.
11 Views
View Answer
              72.Preferred stock issued in exchange for land would be reported in the statement of cash flows in a.the cash flows from financing activities section. b.the cash flows from investing activities section. c.a separate schedule or note to the financial statements. d.the cash flows from operating section.               73.In preparing a statement of cash flows,.
5 Views
View Answer
197.From the information below, compute the payout ratio for Kevin’s Trailers. Net Income              $200 Cash Dividends (common)              50 Retained Earnings               500 Stock Dividends (common)              10 a.30%. b.25%. c.10%. d.2%. 198.The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures. Total assets              $300,000 Stockholders’ equity—common               160,000 Total stockholders’ equity              200,000 Sales              100,000 Net income              20,000 Number of.
8 Views
View Answer
*172.Geary Company had credit sales of $1,400,000. The beginning accounts receivable balance was $80,000 and the ending accounts receivable balance was $280,000. Using the direct method of reporting cash flows from operating activities, what were the cash collections from customers during the period? a.$1,600,000. b.$1,400,000. c.$1,200,000. d.$1,480,000. *              173.During 2012, White Company had $160,000 in.
18 Views
View Answer
162.Sampson Company had the following transactions that took place during the year: I.Recorded credit sales of $2,500 II.Collected $1,500 owning from customers III.Recorded sales returns of $500 and credited the customer's account. What is the total effect of these transactions on Free Cash Flow, Current Cash Debt Coverage Ratio, and Cash Debt Coverage Ratio,.
9 Views
View Answer
              11.Noncash investing and financing activities must be reported in the body of a statement of cash flows.               12.Noncash investing and financing transactions, such as the exchange of common stock to purchase assets, represent significant investing and financing activities and are reflected either in a schedule separate from the statement.
9 Views
View Answer
              82.Norris Company issued 15,000 shares of $1 par common stock for $25 per share during 2012. The company paid dividends of $36,000 and issued long-term notes payable of $330,000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows? a.$9,000.
6 Views
View Answer
122.Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is incorrect? Add to Net IncomeDeduct from Net Income a.Accounts Receivabledecreaseincrease b.Prepaid Expensesincreasedecrease c.Inventorydecreaseincrease d.Accounts Payableincreasedecrease               123.Which of the following adjustments to convert net income to net cash provided by operating activities is not added.
6 Views
View Answer
              31.The cash debt coverage ratio indicates a company’s ability to repay its liabilities from cash generated from operations.               32.The cash basis measure of liquidity is the cash debt coverage ratio.               33.The current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it.
9 Views
View Answer
Be. 223 Listed below are items typically found in the stockholders equity section of the 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 Stockholders’ equity Paid-in capital Capital stock Additional paid-in capital Total additional paid-in capital Total paid-in capital Retained earnings Total.
8 Views
View Answer
102.Accounts receivable arising from sales to customers amounted to $120,000 and $105,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $360,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the.
6 Views
View Answer
157.When stock dividends are distributed, a.Common Stock Dividends Distributable is decreased. b.retained earnings is decreased. c.Paid-in Capital in Excess of Par Value is debited if it is a small stock dividend. d.no entry is necessary if it is a large stock dividend.               158.A small stock dividend is defined as a.less than 30% but greater than.
10 Views
View Answer
177.Nance Corporation’s December 31, 2012 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative,       20,000 shares authorized; 10,000 shares issued              $   200,000 Common stock, $10 par value, 2,000,000 shares authorized;       1,300,000 shares issued, 1,280,000 shares outstanding              13,000,000 Paid-in capital in excess of par value – preferred stock              40,000 Paid-in.
7 Views
View Answer
SHORT-ANSWER ESSAY QUESTIONS S-A E 259 Define par value, and discuss its significance in accounting. S-A E 260 Companies frequently issue both preferred stock and common stock. What are the major differences in the rights of stockholders between these two classes of stock? S-A E 261 For what reasons might a company like IBM repurchase some.
15 Views
View Answer
187.Two classifications appearing in the paid-in capital section of the balance sheet are a.preferred stock and common stock. b.paid-in capital and retained earnings. c.capital stock and additional paid-in capital. d.capital stock and treasury stock. 188.All of the following are normally found in a corporation’s stockholders’ equity section except a.dividends in arrears. b.common stock. c.paid-in capital. d.retained earnings. 189.Information that is.
8 Views
View Answer
BRIEF Exercises Be. 213 1.Name at least three advantages of a corporation. 2.Corporations acquire treasury stock for a variety of purposes. Name three reasons why a corporation may acquire treasury stock. Be. 214 Identify (by letter) each of the following characteristics as being an advantage or a disadvantage of the corporate form of business or.
6 Views
View Answer
              97.The following data is available for BOX Corporation at December 31, 2012: Common stock, par $10 (authorized 30,000 shares)              $200,000 Treasury stock (at cost $15 per share)              $    1,200 Based on the data, how many shares of common stock are issued? a.30,000. b.20,000. c.29,920. d.19,920.               98.Kaplan Manufacturing Corporation purchased 2,000 shares of its own previously issued.
7 Views
View Answer
S-A E 267(Ethics) Mark Remington, the president and CEO of Earth Systems, Inc., a waste management firm, was recently hospitalized, suffering from exhaustion and a heart ailment. Immediately prior to his hospitalization, Earth Systems had experienced a sharp decline in its stock price, and trading activity became almost nonexistent. The primary.
38 Views
View Answer
152.Each of the following is an adjustment to convert net income to net cash provided by operating activities except a.adding back noncash expenses. b.adding gains and deducting losses. c.analyzing changes to noncash current asset and current liability accounts. d.All of the above are adjustments. 153.The current cash debt coverage ratio is computed by dividing a.average current.
7 Views
View Answer
Ex. 232 During 2012 Kenton Corporation had the following transactions and events: 1.Issued par value preferred stock for cash at par value 2.Issued par value common stock for cash at an amount greater than par value 3.Completed a 2 for 1 stock split in which the $10 par value common stock was changed to.
10 Views
View Answer
167.A net loss a.occurs if operating expenses exceed cost of goods sold. b.is not closed to Retained Earnings if it would result in a debit balance. c.is closed to Retained Earnings even if it would result in a debit balance. d.is closed to the Paid-in Capital account of the stockholders’ equity section of the.
6 Views
View Answer
107.The number of shares of issued stock equals a.unissued shares minus authorized shares. b.outstanding shares plus treasury shares. c.authorized shares minus treasury shares. d.outstanding shares plus authorized shares.               108.Treasury shares plus outstanding shares equal a.authorized stock. b.issued stock. c.unissued stock. d.distributable stock. 109.Which of the following is not a right or preference associated with preferred stock? a.The right to vote. b.First.
9 Views
View Answer
137.Stock dividends and stock splits have the following effects on retained earnings: Stock SplitsStock Dividends a.IncreaseNo change b.No changeDecrease c.DecreaseDecrease d.No changeNo change 138.Dividends are predominantly paid in a.scrip. b.property. c.cash. d.stock. 139.Of the four dividends types, the two most common types in practice are a.cash and scrip. b.cash and property. c.cash and stock. d.property and stock. 140.Regular dividends are declared out of a.paid-in capital in excess.
7 Views
View Answer
MULTIPLE CHOICE QUESTIONS               42.The statement of cash flows a.must be prepared on a daily basis. b.summarizes the operating, financing, and investing activities of an entity. c.is another name for the income statement. d.is a special section of the income statement.               43.Which one of the following items is not generally used in preparing a statement.
8 Views
View Answer
Ex. 240 The following are selected accounts and balances from the records of Doran Corporation on June 30, 2012. Common Stock, $10 par value, 75,000 shares authorized, 50,000 shares issued$500,000 Paid-in Capital in Excess of Par Value—Common Stock 150,000 Preferred Stock, $100 par value, 8%, 3,000 shares authorized and issued 300,000 Retained Earnings 250,000 Treasury.
9 Views
View Answer
127.The effect of the declaration of a cash dividend by the board of directors is to IncreaseDecrease a.Stockholders’ equityAssets b.AssetsLiabilities c.LiabilitiesStockholders’ equity d.LiabilitiesAssets 128.Which of the following is the appropriate general journal entry to record the declaration of cash dividends? a.Cash Dividends Cash b.Dividends Payable Cash c.Paid-in Capital Dividends Payable d.Cash Dividends Dividends Payable 129.The board of directors of Yancey Company declared a cash dividend.
7 Views
View Answer
Be. 220 The Huntsman Corporation has the following stockholders’ equity accounts: Preferred Stock Paid-in Capital in Excess of Par Value—Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value—Common Stock Retained Earnings Treasury Stock—Common Instructions Classify each account using the following tabular alignment.      Paid-in Capital  Retained   Account  Capital StockAdditionalEarningsOther Be. 221 Lindy Corporation has 1,000,000 authorized shares of $20 par value common stock. As.
6 Views
View Answer
              21.During the maturity phase, cash from operations and net income are approximately the same.               22.A loss on sale of equipment is added to net income in determining cash provided by operations under the indirect method.               23.Under the indirect method, gains and losses from the sale of equipment used in.
10 Views
View Answer
112.Landis Company reported a net loss of $6,000 for the year ended December 31, 2012. During the year, accounts receivable decreased $14,000, merchandise inventory increased $10,000, accounts payable increased by $20,000, and depreciation expense of $10,000 was recorded. During 2012, operating activities a.used net cash of $2,000. b.used net cash of $28,000. c.provided.
23 Views
View Answer
TRUE-FALSE STATEMENTS               1.The statement of cash flows is a required statement that must be prepared along with an income statement, balance sheet, and retained earnings statement.               2.For external reporting, a company must prepare either an income statement or a statement of cash flows, but not both.               3.A primary objective of.
14 Views
View Answer
Exercises Ex. 225 The corporate charter of Torres Corporation allows the issuance of a maximum of 3,000,000 shares of $1 par value common stock. During its first three years of operation, Torres issued 1,560,000 shares at $15 per share. It later acquired 60,000 of these shares as treasury stock for $25 per.
6 Views
View Answer
*Ex. 238 On January 1, 2012, Mather Corporation had Retained Earnings of $525,000. During the year, Latter had the following selected transactions: 1.Declared stock dividends of $40,000 2.Declared cash dividends of $50,000 3.A 2 for 1 stock split involving the issue of 200,000 shares of $5 par value common stock for 100,000 shares of.
7 Views
View Answer
147.CAB Inc. has 1,000 shares of 4%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock? a.$40 per share. b.$4,000 in total. c.$400 in total. d.$0.40 per share.               148.Which of the following statements is.
7 Views
View Answer
Ex. 236 On October 31 the stockholders' equity section of Eaton Company's balance sheet consists of common stock $548,000 and retained earnings $400,000. Eaton is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000 $12 par value shares outstanding or (2) affecting a 3-for-1.
8 Views
View Answer
Ex. 227 Miles Co. had these transactions during the current period. June12Issued 60,000 shares of $3 stated value common stock for cash of $250,000. July11Issued 2,000 shares of $100 par value preferred stock for cash at $106 per share. Nov.28Purchased 2,000 shares of treasury stock for $10,000. Instructions Prepare the journal entries for the preceding transactions. Ex..
8 Views
View Answer
              92.A company would be expected to generate small amounts of cash from operations during the a.introductory phase. b.growth phase. c.maturity phase. d.decline phase.               93.The phase in the product life cycle when a company is purchasing fixed assets and beginning to produce and sell is the a.introductory phase. b.growth phase. c.maturity phase. d.decline phase.               94.Cash from operations and.
5 Views
View Answer
117.Outstanding stock of the Hall Corporation included 30,000 shares of $5 par common stock and 15,000 shares of 6%, $10 par non-cumulative preferred stock. In 2011, Hall declared and paid dividends of $6,000. In 2012, Hall declared and paid dividends of $18,000. How much of the 2012 dividend was distributed.
6 Views
View Answer
Be. 216 An inexperienced accountant for Teahan Corporation made the following entries. July1Cash.......................................170,000 Common Stock............................170,000 (Issued 20,000 shares of no-par common stock, stated value $6 per share) Sept.1Common Stock................................36,000 Retained Earnings.............................24,000 Cash...................................60,000 (Purchased 4,000 shares issued on July 1 for the treasury at $15 per share) Instructions On the basis of the explanation for each entry, prepare the entry that should have.
5 Views
View Answer
142.If a gain of $27,000 is incurred in selling (for cash) office equipment having a book value of $180,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is a.$153,000. b.$180,000. c.$207,000. d.$27,000.               143.If a loss of $62,000 is incurred in selling (for cash) office.
7 Views
View Answer
Ex. 239 The following accounts appear in the ledger of Bradley, Inc., after the books are closed at December 31, 2012. Common Stock, $1 par value, 800,000 shares authorized, 500,000 shares issued$500,000 Common Stock Dividends Distributable80,000 Paid-in Capital in Excess of Par Value—Common Stock950,000 Preferred Stock, $100 par value, 8%, 10,000 shares authorized; 4,000.
7 Views
View Answer
IFRS QUESTIONS               1.Jahnke Corporation issued 5,000 shares of €2 par value ordinary shares for €11 per share. The journal entry to record the sale will include a.a debit to Cash for €10,000. b.a credit to Share Premium–Ordinary for €45,000. c.a credit to Share Capital–Ordinary for €55,000. d.a debit to Retained Earnings for €22,000.               2.La.
12 Views
View Answer
Ex. 234 The stockholders’ equity section of Fleming Corporation at December 31, 2011, included the following: 5% preferred stock, $100 par value, cumulative, 15,000 shares authorized, 10,000 shares issued and outstanding..$1,000,000 Common stock, $10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding ....................$2,000,000 Dividends were not declared on the preferred stock in 2011.
7 Views
View Answer
              62.Harden Corporation engaged in the following transaction. Assume that the Harden Corporation uses the indirect method to depict cash flows. Indicate where, if at all, dividends received on securities held would be classified on the statement of cash flows. a.Operating activities section. b.Investing activities section. c.Financing activities section. d.Does not represent a cash.
7 Views
View Answer
COMPLETION STATEMENTS               245.A corporation has a separate __________________________ distinct from its owners.               246.The major advantages of the corporate form of organization include (1) limited _________________ of stockholders, (2) continuous ____________________ and (3) ease of transferring ___________________.               247.The _______________ is the chief executive officer with direct responsibility for managing the business.              .
9 Views
View Answer
132.The indirect and direct methods of preparing the statement of cash flows are identical except for the a.significant noncash activity section. b.operating activities section. c.investing activities section. d.financing activities section. 133.If $240,000 of bonds are issued during the year but $400,000 of old bonds are retired during the year, the statement of cash flows will.
7 Views
View Answer
              52.Investing activities include a.collecting cash on loans made. b.obtaining cash from creditors. c.obtaining capital from owners. d.repaying money previously borrowed.               53.Generally, the most important category on the statement of cash flows is cash flows from a.operating activities. b.investing activities. c.financing activities. d.significant noncash activities.               54.The category that is generally considered to be the best measure of a.
7 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

Let us boost your grade together!