1. On January 1, the Tlaquepaque Company was authorized to issue 100,000
shares of $4 par value common stock and 50,000 shares of $25 preferred stock.
If Tlaquepaque Company issued 5,000 shares of common stock for $10 per
share on January 10, the entry to record the issuance of the stock would include
a credit to common stock of:
Mogollon Inc. is authorized to issue 5,000,000 shares of $10 par common stock.
500,000 shares of stock were originally sold for $25 per share. The stock is
currently selling for $20 per share and Mogollon has decided to repurchase
10,000 shares of stock. When Mogollon repurchases their own stock, how much
gain or loss will the company recognize on its income statement?
Which of the basic shareholder rights do preferred stockholders normally give
up?
Ahwatukee Airlines has the following shareholders’ equity at December 31:
Common Stock, 5,000,000 shares authorized, $5 par value $2,000,000
Paid-in Capital in Excess of Par Value $4,000,000
Retained Earnings $16,530,000
Treasury Stock (150,000 shares) $1,800,000
How many shares of stock are outstanding at December 31?
Which of the following accounts has a normal debit balance?
When a company wants to increase the market price of its stock, what action
should it take?
Smith & Sons reported net income of $10,000, and has a beginning of year
common stockholders’ equity balance of $5,000 and an end of year common
stockholders’ equity balance of $9,000. What is the company’s return on
common stockholders’ equity?
Smith & Sons, Inc., is authorized to issue one million shares of $1 par value common stock. In the company’s initial public offering, 500,000 shares are sold to the investing public at a price of $5 per share. One month following Smith & Sons’ initial public offering, 1,000 of its common shares were sold by one investor to another at a price of $10 per share. How should this transaction be recorded in the accounts of Smith & Sons? Why?
Smith & Sons had net income of $50 and an increase in accounts receivable of
$40. Considering only these two items, the effect on operating cash flow is:
The purchase of equipment is reported in the statement of cash flows as an:
Proceeds from issuance of long-term debt would appear on the statement of
cash flows as:
The purchase of treasury stock will have what impact on the statement of cash flows?
Cash inflows or outflows from investing activities would involve all of the following
except:
Which of the following transactions has an effect on the statement of cash flows?
