Questions from Financial Accounting

Q: Theodore Company has 12,000 shares of $6 par common

Theodore Company has 12,000 shares of $6 par common stock outstanding, which Theodore Company issued at $10 per share. Theodore Company also has retained earnings of $84,000. How much is Theodore Comp...

Q: Your business has been doing pretty well since you first opened the

Your business has been doing pretty well since you first opened the doors five years ago. You’ve been thinking, for the past six months or so, about expanding the business. There is some property righ...

Q: Christianson, Inc., has two classes of stock, $15

Christianson, Inc., has two classes of stock, $15 par common and $25 par preferred. Journalize Christianson’s issuance of the following: a. 1,000 shares of common stock for $35 per share b. 2,000 sha...

Q: When using the indirect method, why are gains on the sale

When using the indirect method, why are gains on the sale of fixed assets subtracted from net income in the operating activities section of the statement of cash flows? Why are losses on the sale of f...

Q: The Fixed Assets account of Hamilton, Inc., shows:

The Fixed Assets account of Hamilton, Inc., shows: Hamilton, Inc., sold fixed assets at an $18,000 gain. How much should Hamilton, Inc., report for the sale? a. Cash flows from investing activities...

Q: Matrix, Inc., reported the following data for 2016:

Matrix, Inc., reported the following data for 2016: Compute Matrix, Inc.’s net cash provided by operating activities according to the indirect method.

Q: What accounts are affected by the declaration and distribution of a stock

What accounts are affected by the declaration and distribution of a stock dividend? What is the effect of a stock dividend on a. Total Stockholders’ Equity? b. Total Assets? c. Total Liabilities? d. C...

Q: What is the term for a company’s own stock that it has

What is the term for a company’s own stock that it has issued and repurchased? a. Outstanding stock b. Treasury stock c. Stock dividend d. Issued stock

Q: Watkins Enterprises earned net income of $95,000 during the

Watkins Enterprises earned net income of $95,000 during the year ended December 31, 2016. On December 15, 2016, Watkins Enterprises declared the annual cash dividend on its 2 percent preferred stock (...

Q: Assuming the indirect method is used, how does an increase in

Assuming the indirect method is used, how does an increase in accounts receivable during the year affect the statement of cash flows (if at all)? Why?