)On January 1, Sunland Corporation had 270000 common shares issued. On April 10, the company declared a 10% stock dividend to be distributed on April 30. The market value of the shares was $8 on April 10 and $12 on April 30. The entry to record the transaction of April 10 would include a a) credit to Stock Dividends Distributable for $216000. b) debit to Stock Dividends Distributable for $270000. c) credit to Cash for $216000. d) credit to Retained Earnings for $27000.
1)On January 1, Sunland Corporation had 270000 common shares issued. On April 10, the company declared a 10% stock dividend to be distributed on April 30. The market value of the shares was $8 on April 10 and $12 on April 30. The entry to record the transaction of April 10 would include a
a) credit to Stock Dividends Distributable for $216000.
b) debit to Stock Dividends Distributable for $270000.
c) credit to Cash for $216000.
d) credit to
2) Ingles Corp., a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of
a)operating activities section
b)does not represent a cash flow
c) investing activities section
d) financing activities section
3) Under IFRS, cash receipts from interest and dividends are classified as
a)operating activities.
b)either financing or investing activities.
c)investing activities.
d)either operating or investing activities.
4)Ingles Corp., a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of cash flows. Issue of common shares in exchange for equipment:
a)financing activities section
b) operating activities section
c)investing activities section
d) does not represent a cash flow
5) Boreal Corporation is a private corporation reporting under ASPE and uses the indirect method when preparing its statement of cash flows. The company has engaged in the following transactions. For each transaction, indicate where it would be reflected on the statement of cash flows. An increase in inventory from year one to year two:
a) does not represent a cash flow
b) investing activities section
c) financing activities section
d) operating activities section
6) In preparing a statement of cash flows, preferred shares issued in exchange for land would be reported in the
a) investing activities section.
b) financing activities section.
c) notes to the financial statements.
d) operating activities section.
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