Ul Plr Value will be credited for $25,000. Pliu-in Capital in Excess of Par Valu
ID: 2590969 • Letter: U
Question
Ul Plr Value will be credited for $25,000. Pliu-in Capital in Excess of Par Value will be credited for $210,000 Cash will be debited for $185,000. D) 32. If common stock is issued for an amount greater than par value, the excess should be credited to A) Cash B) Retained Earnings. C) Additional Paid-in Capital D) Legal Capital. 33. A corporation purchases 15,000 shares of its own $20 par common stock for $35 per share, recording i at cost. What will be the effect on total stockholders' equity? A) Increase by $525.000. B) Decrease by $300,000. C) Decrease by $525,000 D) Decrease by $225,000. 34. The primary purpose of the statement of cash flows is to A) provide information about the investing and financing activities during a period. B) prove that revenues exceed expenses if there is a net income. C) provide information about the cash receipts and cash payments during a period. D) facilitate banking relationships Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, accounts receivable collected would be classified on the statement of cash flows. A) Operating activities section. B) Investing activities section. C) Financing activities section. D) Does not represent a cash flow. 35. 36. Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, long-term debt retired with cash would be classified on the statement of cash flows.Explanation / Answer
32. Additional Paid in capital
If the shares are issued at the value more than its face value then excess over it goes to Additional paid in capital and comes under Equity section in the balance sheet.
33. Decrease by 525,000
If company purchases its own 15,000 shares of $20 par at $35 per share then the sharecapital will decrease by
$35 * 15,000 shares = 525,000,
As company purchased its own shares at $35 so on one hand cash will decrease by 525,000 and Treasury stock will increase by 525,000 and Treasury stock is deducted from Shareholder's fund so Shareholder'sfund will decrease by 525,000
34. C
Cash flow statement is a statement which shows the flow from different activities i.e. Operating, Investing and financing.
35. A
Collection of Accounts receivable is a operating activity for business organisation.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.