Reference no: EM132483079

Question 1 - Our company is authorized to issue 100,000 shares of no par value common stock. On August 21 we issued 20,000 shares for $11 per share. What account(s) and amount(s) would we credit when we record the journal entry for this transaction?

a) cash, $220,000

b) common stock, $220,000

c) common stock, $1,100,000

d) cash, $1,100,000

Question 2 - On June 1 (date of declaration), the company's board of directors announces the intention to pay a $0.50 per share dividend on the 1,000,000 outstanding shares of common stock to the stockholders of record on June 15. The payment date for the cash dividend is June 30. What account and amount would we credit when we record the journal entry on the date of record?

a) dividends, $500,000

b) dividends payable, $500,000

c) cash, $500,000

d) no entry required

Question 3 - During the year, we made a payment of long-term notes payable of $45,000 and borrowed $20,000 on a long-term note payable. Which of the following is correct for our statement of cash flows?

a) Net cash used for financing activities is ($25,000).

b) Net cash provided by investing activities is $25,000.

c) Net cash provided by financing activities is $25,000.

d) Net cash used for financing activities is ($45,000).

Question 4 - Our company originally issued 1,000 shares of $1 par value common stock for $9 per share. We repurchased 200 shares of the stock as treasury stock for $10 per share. On September 5, we sold 100 shares of treasury stock for $12 per share. What account(s) and amount(s) would we credit when we record the journal entry for the September 5 transaction?

a) cash, $1,200

b) treasury stock, $1,000; and paid in capital from treasury stock, $200

c) treasury stock, $1,000

d) cash, $1,000