1. The following information was taken from a company's records for the plant and equipment account:
Plant and equipment
Beg bal 25,000
Purchase 57,000 sale 34,000
End bal 48,000
What would appear on the statement of cash flows for the activity in this account?
A. Only proceeds from sale of plant and equipment of $34,000.
B. Net change in plant and equipment account $23,000.
C. Proceeds from sale of plant and equipment of $34,000 and payment for purchase of plant and equipment of ($57,000).
D. Only payment for purchase of plant and equipment ($57,000).
Plant and Equipment
2. A company received $25,000 for 1,000 shares of $5 par value stock. Which of the following is the appropriate journal entry to record this transaction
3. The following stockholders' equity information is available for Danner Corporation regarding its common stock
Par Value $1
Number of shares outstanding 132,000
Number of SHares authorized 500,000
Number of Shares treasury Stock 20,000
Current selling price $18
a. What is the maximum number of new shares that Danner Corporation can issue?
b. Prepare the journal entry for the sale of 30,000 additional shares at the current selling price.
4. A corporation had 50,000 shares of $2 par value common stock outstanding on March 1. On that date the board of directors approved a 10% stock dividend when the market value for the stock was $13 per share. What is the required journal entry to record this dividend?