Reference no: EM132938601
Questions -
Q1. This question has two parts. Please answer both parts in the box below.
a. In 2018, Poe's Products completed the treasury stock transactions described below. Poe had issued 50 million shares of its $1 par common stock for $18 several years ago.
January 2: Reacquired 10 million shares at $16 per share as treasury stock.
February 15: Sold 10,000 treasury shares at $20 per share.
September 20: Sold 3 million treasury shares at $15 per share.
Required - How much is the PIC -treasury stock recorded on Feb 15? Please use dollar sign and comma in the amount. No letter or word in your answer.
Q2. In 2018, Western Corporation completed the transactions listed below. Western had issued 200,000 shares of its $1 par common stock for $10 several months ago.
February 21: Reacquired 70,000 shares at $12 to retire them.
March 19: Reacquired 60,000 shares at $9 to retire them.
May 17: Sold 25,000 new shares at $8.
Required - How much is Retained earning debited on Feb 21st?
Q3. Howdy's Restaurants Cash Flow
Cash received from:
Customers $1,800
Interest on investments 200
Sale of land 100
Issuance of Rowdy's own common stock 600
Issuance of debt securities 2,000
Sale of investment 4100
Cash paid for:
Interest on debt $300
Income tax 80
Debt principal reduction 1,500
Purchase of equipment 4,000
Purchase of inventory 1,000
Dividends on common stock 200
Operating expenses 500
Rowdy's would report net cash inflows (outflows) from Investing activities in the amount of?