12) JAE Corp.'s transactions for the year ended December 31, 20X8 included the following:Purchased real estate for $1,250,000 cash.Sold available-for-sale securities for $1,000,000.Paid dividends of $1,200,000.Issued 500 shares of common stock for $500,000.Purchased machinery and equipment for $250,000 cash.Received a $250,000 cash dividend from an equity investment.Paid $900,000 toward a bank loan.Reduced accounts receivable by $200,000.Increased accounts payable $400,000.JAE Corp's net cash used in INVESTING activities for 20X8 was:a) $250,000.b) $500,000.c) $750,000.d) $1,500,000.Use the following financial statement information for problem 13:Comparative Balance Sheet12/31/20X312/31/20X2Cash$ 408,000$ 192,000Accounts receivable360,000216.000480,000960,000InventoryProperty, plant, and equipmentAccumulated depreciation384.000608,000(320,000)$1,440,000(304,000)$1,544,000Total Assets$ 176,000Accounts payableIncome taxes payableBonds payable2$96,000352,000392.000360.000600,00Common stockRetained earnings216,000240,000$1,544,000216.000336.000Total Liabilities and Equity$1.440,000Income Statement for the Year ended Dec 31, 20X3Sales revenue$8,400,0007,152,0001,248,000Cost of salesGross profitDepreciation expenseOther operating expensesIncome from operationsInterest expenseIncome before taxes$ 80,000712,000792,000456,00072,000384,00096,000$ 288,000Income taxesNet incomeCash dividends for the year 20X3 were $192,000.During the year, equipment was sold for $240,000. This equipment cost $352,000 originally and had abook value of $288.000 at the time of sale.13) Based on the F/S above, net cash provided by OPERATING activities is:a) $408,000.b) $288,000.c) $240.000,d) $352,000.14) Interest payments to creditors are reported in a statement of cash flows as:a) An investing activity.b) A borrowing activity.c) A financing activity.d) An operating activity.

particulars amount purchased Real estate $1,250,000 less : available for sale securities…

2) JAE Corp.'s transactions for the year ended December 31, 20X8 included the fo • Purchased real estate for $1,250,000 cash. • Sold available-for-sale securities for $1,000,000. • Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Received a $250,000 cash dividend from an equity investment. Paid $900,000 toward a bank loan. • Reduced accounts receivable by $200,000. • Increased accounts payable $400,000. AE Corp's net cash used in INVESTING activities for 20X8 was: a) $250,000. b) $500,000. c) $750,000. d) $1,500,000.

2) JAE Corp.'s transactions for the year ended December 31, 20X8 included the fo • Purchased real estate for $1,250,000 cash. • Sold available-for-sale securities for $1,000,000. • Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Received a $250,000 cash dividend from an equity investment. Paid $900,000 toward a bank loan. • Reduced accounts receivable by $200,000. • Increased accounts payable $400,000. AE Corp's net cash used in INVESTING activities for 20X8 was: a) $250,000. b) $500,000. c) $750,000. d) $1,500,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year:Feb. 24. Acquired 1,000 shares of Tett Co. stock for $85 per share plus a $150 brokerage commission.May 16. Acquired 2,500 shares of Issacson Co. stock for $36 per share plus a $100 commission.July 14. Sold 400 shares of Tett Co. stock for $100 per share less a $75 brokerage commission.Aug. 12. Sold 750 shares of Issacson Co. stock for $32.50 per share less an $80 brokerage commission.Oct. 31. Received dividends of $0.40 per share on Tett Co. stock.Journalize the entries for these transactions.
on An analysis of Forest Hills Corporation's Investment in Marketable Securities account disclosed the following: Debit entries $ 160,000 Credit entries 240,000 Forest Hill's income statement included a $40,000 gain on sale of marketable securities and $30,000 dividend income from marketable securities. All payments and proceeds relating to marketable securities transactions were in cash. The amount of cash paid by Forest Hills Corporation in for the purchase of marketable securities was: Select one: O a. $200,000 O b. $190,000 O c. $160,000 O d. $240.000
On January 1, Vienna Corporation purchased 40% of the outstanding common stock of the Marietta Corporation for $137,500. During the year, Marietta Corporation reported net income of $50,000 and paid cash dividends of $25,000.The balance of the Investment in the Marietta Corporation account on the books of Vienna Corporation at year-end is: Select one: A. $147,500 B. $135,000 C. $100,000 D. $110,000
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Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Dec. 31. At the end of the accounting period, the fair value of the remaining 600 shares of Tetts Co.'s stock was $85.35 per share. The fair value of the remaining 1,750 shares for Issaxson Co.'s stock was equal to its cost of 436.04 per share. Journalize the entry for this transactions.
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