Multiple Choice Questions:

1. Logan Corporation issues 50,000 shares of $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $3,000,000 and a credit or credits to

a) Preferred Stock for $3,000,000.

b) Paid-in Capital from Preferred Stock for $3,000,000.

c) Preferred Stock for $2,500,000 and Retained Earnings for $500,000.

d) Preferred Stock for $2,500,000 and Paid-in Capital in Excess of Par Value—Preferred Stock for $500,000.

2. Jahnke Corporation issued 8,000 shares of €2 par value ordinary shares for €11 per share. The journal entry to record the sale will include

a) A credit to Share Premium–Ordinary for €72,000.

b) A debit to Cash for €16,000.

c) A credit to Share Capital–Ordinary for €88,000.

d) A debit to Retained Earnings for €72,000.

3. Zoum Corporation had the following transactions during 2014:

1. Issued $125,000 of par value common stock for cash.

2. Recorded and paid wages expense of $60,000.

3. Acquired land by issuing common stock of par value $50,000.

4. Declared and paid a cash dividend of $10,000.

5. Sold a long-term investment (cost $3,000) for cash of $3,000.

6. Recorded cash sales of $400,000.

7. Bought inventory for cash of $160,000.

8. Acquired an investment in Zynga stock for cash of $21,000.

9. Converted bonds payable to common stock in the amount of $500,000.

10. Repaid a 6 year note payable in the amount of $220,000.

What is the net cash provided by financing activities?

a) $<115,000>

b) $<605,000>

c) $105,000

d) $395,000

4. Colie Company had an increase in inventory of $120,000. The cost of goods sold was $490,000. There was a $30,000 decrease in accounts payable from the prior period. Using the direct method of reporting cash flows from operating activities, what were Colie's cash payments to suppliers?

a) $580,000

b) $370,000

c) $310,000

d) $640,000

Answer rating: 100% (QA)

1 d Preferred Stock for 2500000 a... View the full answer