What are the components of cash receipts in accounting?
1. Cash receipt from the sale of equipment. 2. Cash payment for salaries. 3. Cash receipt from the collection of long-term notes receivable. 4. Purchase of equipment in exchange for notes payable. 5. Cash receipt from the issuance of common stock.
What should be reported as a source of cash under cash flows?
The amount that should be reported as a source of cash under cash flows from investing activities is: A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000.
What are the three types of cash flows from operations?
Negative cash flows from operations, negative cash flows from investing and positive cash flows from financing. b. Negative or positive cash flows from operations, negative cash flows from investing and positive cash flows from financing.
Which statement of cash flows helps evaluate management decisions?
The statement of cash flows helps evaluate management decisions by reporting on managers' =investments. c. The statement of cash flows helps predict the ability to make debt payments to lenders and pay dividends to stockholders by reporting =where cash came from and how cash was spent. operating, investing, and financing.
What is increased with debits and decreased with credits?
Liabilities are increased with debits and decreased with credits.
How is stockholder equity reduced?
Stockholders' equity is reduced by the amount in the dividends account.
Who paid $500 to Hampson Furniture?
Illustration: On July 1, R. A. Ware pays the $500 amount that Hampson Furniture had written off on March 1. Hampson makes these entries:
What is a check stub?
A written order signed by an authorized person. A check stub records which of the following: Balance brought forward, check amount, balance, date, payee, purpose.
What is debit card?
Debit cards operate like cash or a personal check, the bank debits the depositors' checking accounts when depositors use their debit cards. Identify internal controls related to cash payments: Issue checks only for approved bills and invoices, enter all cash payment transactions into the accounting records promptly.
What are the uses of online banking?
Common uses of online banking include: Receipt of payment from customers, payments to the government, payments to vendors. When completing a bank reconciliation, adjustments such as deposits not recorded, bank service fees, and errors in the books, are adjustments that are listed in the:
What is the stated value of a common stock?
the stated value of the common stock is less than the per share price investors were willing to pay.
How to calculate rate of return on common stock?
The rate of return on common stock equity is calculated by subtracting preferred dividends from net income and then dividing by average common stockholders' equity. Carlson paid preferred stock dividends of $14,000 in both 2016 and 2017 ($350,000*0.04). Average common stockholders' equity is calculated by taking the average of the sum of the values of the common stock and the retained earnings for both 2016 and 2017. Therefore, ($35,000 - $14,000) / [ ($90,000 + 75,000 + 75,000 + 60,000)/2] = $21,000/$150,000 = 14.0%
How does Albertson increase its stockholders' equity?
By selling 40,000 shares of treasury stock, Albertson is increasing its total stockholders' equity. The total amount of this increase is equal to the fair value of the machine for which the stock was traded. Because Albertson could have sold these 40,000 shares on the open market for 40,000 x $55 = $2,200,000, this is the amount by which the firm is increasing its assets. When including this transaction in its calculation of stockholders' equity, Albertson would record a credit to Treasury Stock of 40,000 x $40 = $1,600,000 and a credit to Paid-in Capital from Treasury Stock of $2,200,000 - $1,600,000 = $600,000, for a total increase in stockholders' equity of $2,200,000.
What method does Keene use to account for treasury stock?
Q 15.26: Keene Corporation uses the cost method to account for treasury stock. After a recent transaction, the firm recorded an $18,000 debit to Cash and a $5,000 debit to Paid-in Capital from Treasury Stock. What else should Keene have recorded in relation to this transaction?
What is paid in equity?
Amounts paid-in or earned that represents stockholders' equity in the corporation .
Can Jeffrey sell his shares in Gilbert Enterprises?
Jeffrey can sell his shares of stock in Gilbert Enterprises to anyone he wants without the knowledge or permission of Gilbert Enterprises.