The net income for Mary Inc. was $2,950,000. Depreciation recorded on plant assets was $380,000. Income taxes paid were $100,000. Accounts receivable and inventories increased by $20,000 and $80,000, respectively. Prepaid expenses and accounts payable decreased by $10,000 and $110,000 respectively. How much cash was provided by operating activities?

a. $3,030,000.

b. $2,750,000.

c. $2,950,000.

d. $3,130,000.

Saleem Company issued 500 no-par ordinary shares for $7,500. Which of the following journal entries would be made if the shares have a stated value of $2 per share?

a. Debit: Cash 7,500

Credit: Share CapitalOrdinary 6,500

Credit: Share PremiumOrdinary 1,000

b. Debit: Share CapitalOrdinary 7,500

Credit: Cash 7,500

c. Debit: Cash 7,500

Credit: Share CapitalOrdinary 7,500

d. Debit: Cash 7,500

Credit: Share CapitalOrdinary 1,000

Credit: Share PremiumOrdinary 6,500

Assume that Home Inc. acquired 25% of the ordinary shares of Lee Inc. on January 1, 2010, for $300,000. During 2010, Lee reported net income of $160,000 and paid total dividends of $60,000. If Home Inc. uses the equity method to account for its investment, the balance in the investment account on December 31, 2010, will be:

a. $340,000

b. $300,000

c. $325,000

d. $400,000

On May 1, 2021, Novak Company declared a dividend of $40,000. Novak Company decided that the dividend would be paid on June 15, 2021, to all shareholders of record on May 25, 2021. The journal entry to record the declaration of the dividend on May 1 would include a

a. Debit to Dividends Payable of $40,000.

b. Credit to Dividends of $40,000.

c. Debit to Cash of $40,000.

d. Credit to Dividends Payable of $40,000.