1. Ophelia Ltd. reported retained earnings at December 31, 20x6 of $267,000, and at December 31, 20x7, $213,000. Net income for calendar 20x7 was $174,000. During 20x7, a stock dividend was declared and distributed, which increased the common shares account by $117,000. As well, a cash dividend was declared and paid during the year. 

Given the information provided, what would be the amount of the cash dividend declared and paid ?

2. Selected information from Cordelia Corp.'s 20x7 accounting records is as follows: Cordelia adheres to ASPE.

Proceeds from issuance of common shares	$350,000
Proceeds from issuance of bonds	1,140,000
Cash dividends paid on common shares	145,000
Cash dividends paid on preferred shares	47,000
Purchase of FV-NI investment	105,000
Sale of shares to officers and employees	93,000

1. 
   
2. Calculate the cash provided by financing activities during 20x7.

3. Ross Corp.'s transactions for calendar 20x7 included the following:

1. Acquired 50% of Lennox Ltd.'s common shares for $80,000 cash.
2. Issued 4,500 preferred shares in exchange for land with a fair value of $156,000.
3. Issued 11% bonds, par value $200,000, for $191,000 cash.
4. Purchased a patent for $102,000 cash.
5. Borrowed $94,000 from Bank A.
6. Paid $58,000 toward a bank loan with Bank B.
7. Sold long-term investments for $393,000 cash.

What was the cash provided by (used in) financing activities for 20x7 ?

Answer rating: 100% (QA)

1To determine the amount of cash dividend declared and paid we need to reconcile the change in retained earnings Heres the calculation Retained earnin... View the full answer