Question

If a corporation issues 5,000 shares of​ $5 par value common stock for $ 90,000​, the journal entry would include a credit​ to:
A.Common Stock for $ 90,000.
B.Common Stock for $ 65,000.
C.Paidminusin Capital in Excess of Parlong dashCommon for $ 90,000.
D.Paidminusin Capital in Excess of Parlong dashCommon for $ 65,000.

If a corporation issues 2,000 shares of​ $1 par value common stock for $ 10,000​, the journal entry would include a credit​ to:
A.Common Stock for $ 2,000.
B.Common Stock for $ 10,000.
C.Retained Earnings for $ 2,000.
D.Paidminusin Capital in Excess of Parlong dashCommon for $ 10,000.
  
Kunze Corporation has​ $1 par value Common Stock with​ 100,000 shares authorized and​ 25,000 shares issued. The journal entry to record​ Kunze's purchase of 3,000 shares of common stock at $ 5 per share would​ be:
A. debit Cash for $ 15,000​, credit Common Stock for $ 3,000 and credit Paidminusin Capital in Excess of Parlong dashCommon for $ 12,000.
B. debit Common Stock for $ 3,000​, debit Paidminusin Capital in Excess of Parlong dashCommon for 12,000 and credit Cash for $ 15,000.
C. debit Treasury Stock for $ 15,000 and credit Cash for $ 15,000.
D. debit Common Stock for $ 15,000 and credit Cash for $ 15,000.

  
On December 31 of the current​ year, Pilozzi Company has the following information​ available:
Common Stock $5 million
Additional Paidminusin Capital $4 million
Retained Earnings $3 million
Cash $3 million
Investment in Trading Securities ​$50,000
On December 31 of the current​ year, can the Board of Directors declare and pay a cash dividend of $ 4 ​million?
A. No, the cash balance is below $ 4 million.
B. Yes, if they can borrow some​ money, or liquidate some assets.
C. No, Cash and Retained Earnings are both below $ 4 million.
D. No, Retained Earnings is below $ 4 million.

In​ general, the order of reporting​ stockholders' equity on the balance sheet​ is:
A. Preferred​ Stock, Common​ Stock, Paidminusin Capital in Excess of​ Par, Retained​ Earnings, Treasury Stock.
B. Common​ Stock, Preferred​ Stock, Paidminusin Capital in Excess of​ Par, Retained​ Earnings, Treasury Stock.
C. Preferred​ Stock, Common​ Stock, Treasury​ Stock, Paidminusin Capital in Excess of​ Par, Retained Earnings.
D. Retained​ Earnings, Preferred​ Stock, Common​ Stock, Paidminusin Capital in Excess of​ Par, Treasury Stock.
In​ 2019, Chen Corporation purchased treasury stock with a cost of $ 53,000. During the​ year, the company declared and paid dividends of $ 9,000 and issued bonds payable for $ 1,200,000. Net cash provided by financing activities for 2019​ is:
A. $ 1,138,000.
B. $ 1,147,000.
C. $ 1 ,200,000.
D. $ 1,191,000.

In​ 2019, Forever​ Young, Inc. sold land for $ 100,000 ​cash, purchased equipment for $ 18,000 cash and issued bonds for $ 100,000 cash. The Net cash provided by investing activities​ is:
A. $ 82,000.
B. $ 182,000.
C. $ 118,000.
D. $ 200,000.
Mary​ Andrews, Inc. had the following​ transactions:
Cash proceeds on sale of land $ 420,000
Cash proceeds on sale of equipment 150,000
Purchase of treasury stock with cash 51,000
Purchase of equipment with cash 51,000
Issuance of common stock for cash 80,000
On a statement of cash flows prepared under the indirect​ method, Net cash provided by investing activities​ is:
A. $ 570,000.
B. $ 548,000.
C. $ 519,000.
D. $ 468,000.

Answer 1

1)	option d
	paid in capital in excess of par -CS $65,000
2)	option a
	common stock $2,000
3)	option c
	Debit treasury stock for $15,000 and credit cash for $15,000
4)	option c
	No ,cash and retained earnings are both below $4 million
5)	option a
	preferred stock,common stock,paid in capital in excess of par,
	retained earnings,treasury stock
6)	net cash provided by financing activities
	Repurchase of stock				-53000
	cash dividend paid				-9000
	cash from bonds payable				1,200,000
	net cash provided by financing activities				1138000
	option a
7)	net cash provided by investing activities
	cash from sale of land				100,000
	purchase of equipment for cash				-18000
	net cash provided by investing activities				82,000
	option a
8)	net cash provided by investing activities
	cash from sale of land				420,000
	cash proceeds on sale of equipment				150,000
	purchase of equipment for cash				-51000
	net cash provided by investing activities				519,000
	option c