The following selected transactions occur during the first year of operations. Determine how each should be reported

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The following selected transactions occur during the first year of operations. Determine how each should be reported in the statement of cash flows.
1. Issued one million shares of common stock at $20 per share.
2. Paid $75,000 to suppliers for inventory.
3. Paid a dividend of $1 per share to common stockholders.
4. Loaned $50,000 to an employee and accepted a note receivable.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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