1. Which of the following is classified as a financing activity on a statement of cash flows?

a. Purchase of a vendor's common stock b. Sale of equipment at a gain c. Payment of dividends to shareholders d. Redemption of a sinking fund

2. Axelton Enterprises sells annual memberships to its shooting lodge. The memberships cost $899 each. On January 1, Axelton sold 8,200 memberships and received cash. What journal entry should Axelton Enterprises make on January 31st if adjusting entries are completed monthly.

a. Debit Unearned Revenue; Credit Cash b. Debit Sales Revenue; Credit Unearned Revenue c. Debit Unearned Revenue; Credit Sales Revenue d. Debit Cash; Credit Sales Revenue

3. Lee Construction enters into a long-term fixed price contract to build an office building for $5,000,000. In the first year of the contract Lee incurs $1,300,000 of cost and the engineers determined that the remaining costs to complete are $2,500,000. Lee billed $2,000,000 and collected $700,000 in year 1. Refer to Lee Construction. How much gross profit should Lee recognize in Year 1 assuming the use of the percentage of completion method? (Round your final answer to the nearest whole dollar.)

a. $410,526 b. $700,000 c. $487,500 d. $1,300,000

4. Gleason Construction enters into a long-term fixed price contract to build an office building for $30,000,000. In the first year of the contract Gleason incurs $8,000,000 of cost and the engineers determined that the remaining costs to complete are $23,000,000 (and indeed they actually were $23,000,000 in the second year). How much gross profit or loss should Gleason recognize in Year 2 assuming the use of the percentage-of-completion method?

a. $1,000,000 profit b. $1,000,000 loss c. $0 d. $741,935 loss