1.Ralston Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Ralston issues 6,000 shares of common stock to pay its recent attorney's bill of $25,000 for legal services on a land access dispute, which of the following would be the journal entry for Ralston to record?

2.

If $245,000 of bonds are issued during the year but $131,000 of old bonds are retired during the year, the statement of cash flows will show a(n) A. net decrease in cash of $114,000.

B. net increase in cash of $114,000.

C. net gain on retirement of bonds of $114,000.

D. increase in cash of $245,000 and a decrease in cash of $131,000.

3.Two classifications appearing in the paid-in capital section of the balance sheet are

A. paid-in capital and retained earnings.

B. preferred stock and common stock.

C. capital stock and treasury stock.

D. capital stock and additional paid-in capital.

4.A corporation purchases 19,000 shares of its own $16 par common stock for $18 per share, recording it at cost. What will be the effect on total stockholders' equity?

A. Decrease by $342,000

B. Decrease by $304,000

C. Increase by $304,000

D. Increase by $342,000

5.The net income reported on the income statement for the current year was $227,000. Depreciation recorded on plant assets was $36,000. Accounts receivable and inventories increased by $3,000 and $6,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $8,000 respectively. How much cash was provided by operating activities?

A. $248,000

B. $266,000

C. $227,000

D. $212,000