24 For a recent year a corporation's financial statements reported Based on the following information, what amount will the corporation report as Net Cash Provided (Used) by Operating Activities on the statement of cash flows? the following: s 100,000 s 10,000 Net Incone Depreciation Increase in accounts receivable Decrease in accounts payable $ 30,000 s 15,000 A) Net cash provided by operating activities B) Net cash provided by operating activities -C) Net cash provided by operating activities D) Net cash provided by operating activities s 130, 000 $ 65, 000 $ 85, 000 s 155, 000 E) None of the above 125 The acquisition of land by issuing common stock 1s A) a noncash transaction which is not reported in the body ofa B) a cash transaction and would be C) a noncash transaction and would be reported in the body of a D) only reported if the statement of cash flows is prepared using statement of cash flows. statement of cash flows statement of cash flows. reported in the body of a the direct method. E) none of the above 26 The board of directors of Irondale Corporation declared a cash dividend of $2.50 per share on 57,000 shares of common stock on June 14, 2010. The dividend is to be paid on July 15, 2010, to shareholders of record on July 1, 2010. The proper entry to be recorded on July 15, 2010 is, - A) Cash $ 142,500 Dividends Payable $ 142,50 B) Dividends Payable Cash 142,500 $ 142,500 C) Cash $142,500 Dividends $142,500 D) Dividends $ 142,500 Cash 142, 500 E) None of the above 27 The entry to close the Dividends account at the accounting period which has a balance of $10,000 1s a) Dividends 10,000 s 10,000 Cash B) Retained Earnings Cash s 10,000 s 10,000 10, 000 5 10,000 c) Dividends Retained Earnings 10,000 D) Retained Earnings Dividends 10,000 E) None of the above 28 If wi1lis corporation has 80,000 shares of conmon stock authorized, 50,000 shares of common stock issued, and holds 2,000 shares of common stock as treasury stock, the total number of outstanding shares of Willis Corporation amounts to 32, 000 78, 000 48,000 36,000 A) B) D) E) none of the above 29 Honig Corporation had the following shares of stock outstanding on December 31, 2010: Common stock, $50 par value, 100,000 shares outstanding Preferred stock, 8 percent, $100 par value, cunulative, 10,000 shares outstanding Dividends were in arrears for 2008 and 2009. On December 31, 2010, total cash dividends of $400,000 were declared. The total amounts payable to preferred stockholders and common stockholders, respectively, are A) $200,000 and $200,000. B) $160, 000 and $240,000. C) $240,000 and $160,000. D) $80,000 and $320, 000. E) none of the above