3) Earned $650 of revenues cash.
4) Paid expenses of $250.
5) Paid a $50 dividend.
During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)
1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750 cash.
4) Incurred expenses of $360.
5) Paid dividends of $100.
What is the amount of Packard Company's net cash flow from financing activities for Year 2?
Net outflow of $220
Net outflow of $320
Net inflow of $5
Net inflow of $225
Net inflow from financing activities = Inflow from stock issuance of $325 − Outflow for loan repayment of $220 − Outflows for dividends of $100 = $5
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-08 Prepare a statement of cash flows.
83.
Award: 1.00 point
84.
Award: 1.00 point
Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $1,200 cash from the issue of common stock.
2) Borrowed $670 from a bank.
3) Earned $850 of revenues cash.
4) Paid expenses of $300.
5) Paid a $100 dividend.
During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)
1) Issued an additional $575 of common stock.
2) Repaid $395 of its debt to the bank.
3) Earned revenues of $1,000 cash.
4) Incurred expenses of $460.
5) Paid dividends of $150.
What is Packard's retained earnings account balance at the end of Year 1 before the process of closing the accounts has been undertaken?
$550.
$0
$450.
$650.
Since the closing process is not complete, the retained earnings account balance at the end of Year 1 is zero. The revenues, expenses, and dividends have not
yet been transferred to the retained earnings as part of the closing process.
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 01-04 Show how business events affect the
accounting equation.
Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues cash.
4) Paid expenses of $250.
5) Paid a $50 dividend.
During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)
1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750 cash.
4) Incurred expenses of $360.
5) Paid dividends of $100.
What is Packard's retained earnings account balance at the end of Year 1 before the process of closing the accounts has been undertaken?
$400
$0
$350
$450
Since the closing process is not complete, the retained earnings account balance at the end of Year 1 is zero. The revenues, expenses, and dividends have not
yet been transferred to the retained earnings as part of the closing process.
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 01-04 Show how business events affect the
accounting equation.
85.
Award: 1.00 point
86.
Award: 1.00 point
Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $1,800 cash from the issue of common stock.
2) Borrowed $1,270 from a bank.
3) Earned $1,450 of revenues cash.
4) Paid expenses of $420.
5) Paid a $220 dividend.
During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)
1) Issued an additional $1,175 of common stock.
2) Repaid $815 of its debt to the bank.
3) Earned revenues of $1,600 cash.
4) Incurred expenses of $700.
5) Paid dividends of $270.
What was the amount of total stockholders’ equity on Packard's balance sheet at the end of Year 1?
$1,580
$2,610
$2,830
$420
Beginning balance of stockholders’ equity of $0 + Common stock issued of $1,800 + Revenues of $1,450 − Expenses of $420 − Dividends of $220 = Ending
balance of stockholders’ equity of $2,610
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Prepare an income statement, a
statement of changes in stockholders equity, and a balance sheet.
Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)