If the common stocj is no par value, how should Grambling record this transactio

Question

If the common stocj is no par value, how should Grambling record this transaction?
a. Common Stock 11,000
Cash 11,000
b. Cash 11,000
Additional Paid-in capital 11,000
c. Cash 11,000
Common Stock 500
Additional Paid-in capital 10,500
d. Cash 11,000
Common Stock 11,000
e. Cash 11,000
Stockholders' Equity 11,000



If the common stock has a $5 par value, how should Grambling record this transaction?
a. Common Stock 11,000
Cash 11,000
b. Cash 11,000
Additional Paid-in capital 11,000
c. Cash 11,000
Common Stock 2,500
Additional Paid-in capital 8,500
d. Cash 11,000
Common Stock 11,000
e. Cash 11,000
Stockholders' Equity 11,000



Companies typically want to have the most stability in generating positive cash flows from
a. investing activities
b. operating activities
c. investing activities
d. property, plany and equipment sales.
e. sales of common, rather than preferred, stock



During 2010, Bates Company earned net income of $275,000 which included depreciation expense of $34,000. The company had a loss on the sale of equipment of $2,000 and the following changes in account balances occurred:
Increase in accounts payable $12,000
Increase in inventory 9,000
Decrease in accounts receivable 8,000
Decrease in prepaid expenses 10,000
Decrease in accrued liabilities 7,000
Based upon this information, what amount will be shown for net cash provided by operating activities for 2010?
a. $289,000
b. $307,000
c. $321,000
d. $323,000
e. $325,000

Explanation / Answer

d. Cash 11,000 Common Stock 11,000 e. Cash 11,000 Stockholders' Equity 11,000 e. sales of common, rather than preferred, stock d. $323,000

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