Question 11/12

A company started the year with $10,000 of inventory.Purchases for resale during the year were $20,000. Inventory onDecember 31 is $5,000. What's the cost of goods sold?

$5,000

$10,000

$25,000

$30,000

$35,000

Question 12/12

A company sells 10,000 shares of previously authorizedstock at the par value of $10 per share. What's the correct entryto record the transaction?

Debit cash $10,000, credit capital stock $10,000

Debit capital stock $100,000, credit cash $100,000

Debit cash $100,000, credit capita 11 stock $100,000

Debit cash $100,000, credit treasury stock $100,000

Debit cash $10, credit capital stock $10

Answer rating: 100% (QA)

Answer to each question along with explanation is provided as follows Question 11 Correct Answer 250... View the full answer