Reference no: EM133046793

Problem - Stockholders' Equity and Statement of Cash Flows

Problem 1 - The following are selected accounts and balances from the records of Furry Corporation on June 30, 2007.

Common Stock, $10 par value, 75,000 shares authorized, 50,000 shares issued $500,000

Paid-in Capital in Excess of Par Value-Common Stock 150,000

Preferred Stock, $100 par value, 8%, 3,000 shares authorized and issued 300,000

Retained Earnings 250,000

Treasury Stock (10,000 common shares) 150,000

Paid-in Capital in Excess of Par Value-Preferred Stock 30,000

Required - Prepare in proper form the stockholders' equity section of the balance sheet.

Problem 2 - Classify each of the following transactions as operating, investing, or financing activities and whether it is an inflow or outflow:

1. Issued common stock for cash.

2. Paid employees' salaries.

3. Sold equipment.

4. Received a dividend.

5. Paid a dividend.

6. Provided services for on account.

7. Purchased land and building.

8. Issued bonds.

9. Paid interest on bonds.

10. Purchased inventory.

11. Sold merchandise.

12. Loaned cash.

13. Paid off bonds.

14. Purchased equipment

15. Bought stock in another company.