exam 2 journal entries

Question 1

Entries for issuing stock

Answer 1

Cash
common stock

Cash
preferred stock

Cash
preferred stock
Paid-in capital in excess of, par preferred stock

Question 2

Entries for cash dividends

Answer 2

Cash dividends
cash dividends payable

no entry
no entry

Cash dividends payable
cash

Question 3

Entries for stock dividends

Answer 3

stock dividends
stock dividends distributable
paid-in capital in excess of, par common stock

no entry
no entry

Stock dividends distributable
common stock

Question 4

Entries for treasury stock

Answer 4

Treasury stock
cash

Cash
Treasury stock
paid-in capital from sale of treasury stock

Cash
Paid-in capital from sale of treasury stock
treasury stock

Question 5

Cash flows from (used for) operating activities - indirect method

Answer 5

• Cash flows from (used for) operating activates
  Net income
  -Adjustments to receive net income to net cash flows (used for) OA
  Depreciation
  Loss on disposal of equipment
• Changes in current operating assets and liabilities
  Increase in accounts receivable
  Increase in accounts payable
• Net cash flows from operating activities