81.Which of the following transactions is not reported in the statement of cash flows as a cash flow from investing activities? A. Selling a depreciable asset for cash at a loss. B. Purchasing a patent using cash. C. Purchasing land in exchange for common stock. D. Purchasing shares of common stock of another company using cash. 82.Which of the following is not reported as a cash flow from investing activities? A. Sale of a depreciable asset for cash. B. Purchasing land in exchange for common stock. C. Selling a long-term investment at a loss for cash. D. Purchase of a […]

41.Which of the following would be added to net income when determining cash flows from operating activities under the indirect method? A. A decrease in accounts payable. B. Patent amortization expense. C. An increase in prepaid insurance. D. A gain on the sale of a depreciable asset. 42.Which of the following would be subtracted from net income when determining cash flows from operating activities under the indirect method? A. A decrease in utilities payable. B. Patent amortization expense. C. A decrease in prepaid rent. D. A loss on the sale of a depreciable asset. 43.Rice Company, a retailer, has provided […]

127.Rock Company issued a $1,000,000 bond on January 1, 2016. The bond was dated January 1, 2016, had an 8% coupon rate, pays interest annually on December 31, and sold for $924,184 at a time when the market rate of interest was 10%. Rock uses the effective-interest method to account for its bonds. Required: Prepare the necessary journal entry for each of the following dates (assuming that no adjusting journal entries have been made during the year): (a) January 1, 2016 (b) December 31, 2016 (c) December 31, 2017 Round the entry items to the nearest whole dollar amounts.    […]

Multiple Choice Questions 1) On May 1, 2011, Deerfield Corporation purchased merchandise from a German firm for 78,000 euros when the spot rate for the euro was 1.48 euro per dollar. The account payable was denominated in the euro. Deerfield settled the account on August 1 when the spot rate for the euro was 1.39 euro per dollar. How much cash will Deerfield have to disburse to settle the account? A) $ 52,702.72 B) $ 56,115.11 C) $108,420.00 D) $115,440.00 2) Cass Corporation's balance sheet at December 31, 2011 included a $48,480 account receivable from Redmun Corporation of Mexico. The […]

Learning Objective 3.4 Questions 1) Which of the following accounts would not be found on the credit side of a trial balance? A) Equipment B) Accounts Payable C) Retained Earnings D) Sales Revenue E) Paid-in Capital 2) Given the following balances, what would the total credits in the trial balance equal? 1. Equipment $52,000 2. Accounts Payable 1,000 3. Sales 51,000 4. Accumulated Depreciation 3,000 5. Accounts Receivable 4,000 6. Retained Earnings 13,000 7. Salary Expense 4,000 8. Cash 12,000 9. Paid-in Capital 10,000 10.Cost of Goods Sold 25,000 A) $103,000 B) $129,000 C) $ 97,000 D) $78,000 E) $83,000 […]