The answer for the first part is not 315000 P14-2A The following account balance

Question

The answer for the first part is not 315000
P14-2A

The following account balances relate to the stockholders' equity accounts of Gore Corp. at year-end.

2008 2007
Common stock, 10,500 and 10,000 shares,
respectively, for 2008 and 2007 $160,000 $140,000
Preferred stock, 5,000 shares 125,000 125,000
Retained earnings 300,000 260,000

A small stock dividend was declared and issued in 2008. The market value of the shares was $10,500. Cash dividends were $15,000 in both 2008 and 2007. The common stock has no par or stated value.



A.   What was the amount of net income reported by Gore Corp. in 2008?
$





Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2008.

B.  Cash inflow from the issue of stock was $

C.  Cash outflow for dividends was $ 



Indicate where each of the cash inflows or outflows identified in the previous question would be classified on the statement of cash flows.

D.  The issue of common stock would be classified as   ___________            activities.

E.  The payment of dividends would be classified as ___________   activities.

Explanation / Answer

(a) 260,000+net income-10,500=300,000 the net income 65,500

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