12 Questions
What is the cash received from the sale of common stock during the current year?
The cash received from the sale of common stock during the current year is $244,000.
Calculate the cash paid for dividends during the current year.
The cash paid for dividends during the current year can be calculated as the change in retained earnings, which is the difference between the beginning and ending balances of retained earnings. In this case, the cash paid for dividends during the current year is $59,000 (net income) - $353,000 (beginning retained earnings) + $589,000 (ending retained earnings) = $295,000.
What is the beginning balance of Paid-in Capital in Excess of Par?
The beginning balance of Paid-in Capital in Excess of Par is $353,000.
What is the ending balance of Common Stock, $10 Par?
The ending balance of Common Stock, $10 Par is $130,000.
What is the issuance of common stock during the current year?
The issuance of common stock during the current year is $8,000.
Calculate the ending balance of Paid-in Capital in Excess of Par for the current year.
$589,000
Determine the cash received from the sale of common stock during the current year.
$244,000
What is the beginning balance of Retained Earnings for the current year?
$335,500
Calculate the issuance of common stock during the current year.
$8,000
What is the net income for the current year ended December 31?
$59,000
Explain the process of calculating the cash received from the sale of common stock during the current year for Princeton Company.
First, the issuance of common stock needs to be recorded in the T-account for Common Stock, $10 Par. Then, the issuance of common stock needs to be recorded in the T-account for Paid-in Capital in Excess of Par. The difference between the ending and beginning balances of the Paid-in Capital in Excess of Par account will give the cash received from the sale of common stock. In this case, the cash received from the sale of common stock during the current year is $244,000.
How can the T-account be completed to calculate the cash paid for dividends during the current year for Princeton Company?
The T-account for Retained Earnings needs to be completed to calculate the cash paid for dividends. The beginning balance of Retained Earnings needs to be subtracted from the ending balance, and the difference will represent the cash paid for dividends during the current year. In this case, the cash paid for dividends during the current year is $59,000.
Test your understanding of computing financing cash flows with this quiz based on the comparative balance sheets of Princeton Company. Analyze the given financial information to calculate the company's financing cash flows and test your knowledge of accounting principles.
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