15. A company sells 1 million shares of common stock with a par value of $0.02 for $15 a share. To record the transaction, the company would: A. Increase Cash for $20,000 and increase Common Stock for $20,000. B. Increase Cash for $15 million and increase Common Stock for $15 million. C. Increase Cash for $15 million, increase Common Stock for $20,000 and increase additional paid-in Capital for $14,980,000. D. Increase Cash for $20,000, increase Capital Receivable for $14,980,000, increase Common Stock for $20,000 and increase additional paid-in capital for $14,980,000.
Related questions
Calculation of net income from the change in stockholders'equity.
Presented below are changes in the account balances of Wenn Companyduring the year, except for retained earnings.
| Increase | Increase | |
| (Decrease) | (Decrease) |
| Cash | $29,000 | Accounts payable | $34,000 |
| Accounts receivable (net) | (18,000) | Bonds payable | (20,000) |
| Inventory | 52,000 | Common stock | 62,000 | |
| Plant assets (net) | 57,000 | Paid-in capital | 16,000 |
The only entries in Retained Earnings were for net income and adividend declaration of $17,000.
1. Compute the net income for the current year. Show your work andclearly mark you answer.
Question 2
The following information is necessary to answer questions 2, 3, and 4:
Increase in prepaid insurance 1000; Goodwill 2000; Equipment Depreciation expense 15000; Increase in accounts payable 3000; Net income 35000;Issuance of common stock 12000; Increase in inventory 5000; Payment of dividends 9000; Increase in bonds payable 7000;Decrease in accounts receivable 4000; increase in mortgage payable 26000;
Addditional information: Purchased equipment for $ 20,000, financing $ 10,000 on a note payable, and exchanging $ 5000 in common stock.
Sold equipment for $ 10,000 that cost $ 18,000 and had accumulated depreciation of $ 6,000.
Sold marketable securities for $ 15,000 that cost $ 13,500.
What is the net cash flow provided or used from operations?
| a. | 55,000 | |
| b. | 53,500 | |
| c. | 52,500 | |
| d. | 51,500 |
10 points
Question 3
Using the information from question #2, what was the amount of cash used to purchase equipment?
| a. | 5,000 | |
| b. | 20,000 | |
| c. | 10,000 | |
| d. | 15,000 |
10 points
Question 4
Using the information from question #2, what is the amount of cash flow provided or used from financing?
| a. | 36,000 | |
| b. | 23,000 | |
| c. | 24,000 | |
| d. | 31,000 |
