Mercury Corporation issued 5,500 shares of no-par common stock for $15 per share. Mercury also issued 1,600 shares of $55 par, 6 percent noncumulative preferred stock at $65 per share. Required Record these events in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank.

Mercury Corporation issued 5,500 shares of no-par common stock for $15 per share. Mercury also issued 1,600 shares of $55 par, 6 percent noncumulative preferred stock at $65 per share. Required Record these events in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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S1. Account
Nutrition Inc. reissued treasury stock. How would this be shown on a statement of cash flows? decrease in cash from an investing activity increase in cash from a financing activity decrease in cash from an operating activity decrease in cash from a financing activity increase in cash from an investing activity increase in cash from an operating activity Nutrition Inc. made a payment on a past due account payable. How would this be shown on a statement of cash flows? increase in cash from a financing activity decrease in cash from an operating activity increase in cash from an operating activity decrease in cash from a financing activity increase in cash from an investing activity decrease in cash from an investing activity
Renaldo Cross Company paid $2,000 interest on short-term notes payable, $10,000 principal of long-term bonds, and $6,000 in dividends on its common stock. Renaldo Cross Company would report cash outflows from activities, as follows: Multiple Choice Operating, $0; investing, $10,000; financing, $8,000. Operating, $0; investing, $0; financing, $18,000. Operating, $2,000; investing, $10,000; financing, $6,000. Operating, $2,000; investing, $0; financing, $16,000. 身

The Stancil Corporation provided the following current information: Proceeds from long-term borrowing $ 13,800 Proceeds from the sale of common stock 5,000 Purchases of fixed assets 27,500 Purchases of inventories 2,600 Payment of dividends 13,800 Determine the total cash flows spent on fixed assets and NWC, and determine the cash flows to investors of the firm. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)
8
On May 1, Year 3, Love Corporation declared a $68,700 cash dividend to be paid on May 31 to shareholders of record on May 15. Required Record the events occurring on May 1 and May 31 in the following horizontal statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA).
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Janzen Company recorded employee salaries earned but not yet paid. Which of the following represents the effect of this transaction on the horizontal financial statements model? A. B. C. D. Assets + Balance Sheet Liabilities + + + Multiple Choice Option B Option A Option C Option D + Stockholders' Equity Income Statement Revenue + - Expense = + + + Net income + Statement of Cash Flows -Operating Activity -Investing Activity
The comparative balance sheets and income statements for Rundle Company follow: Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income Additional Data $38,810 (15,383) 23,427 (3,925) 19,502 500 (50) $19,952 Year 2 $24,843 2,492 6,517 Cash flows from operating activities: 20,854 (10,472) 16,379 $60,613 $2,490 2,695 20,700 34,728 $60,613 RUNDLE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Year 1 $2,506 1,495 6,110 1. During Year 2, the company sold equipment for $18,357; it had originally cost $28,700. Accumulated depreciation on this equipment was $10,843…