Princeton Company Financing Cash Flows Quiz

The cash received from the sale of common stock during the current year is $244,000.

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.

The beginning balance of Paid-in Capital in Excess of Par is $353,000.

<p>The ending balance of Common Stock, $10 Par is $130,000.</p> Signup and view all the answers

<p>The issuance of common stock during the current year is $8,000.</p> Signup and view all the answers

<p>$589,000</p> Signup and view all the answers

<p>$244,000</p> Signup and view all the answers

<p>$335,500</p> Signup and view all the answers

<p>$8,000</p> Signup and view all the answers

<p>$59,000</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers