705 students have used Clutch for Acct
97% got a better grade
720 minutes of Accounting videos

Accounting Topics that we cover

Popular Accounting Practice Problems

Yarborough Enterprises issued a $500,000 of bonds payable with a 10% interest rate at a price of 104. The journal entry to record the issuance of this bond included a:

a. Debit to Cash, $500,000

b. Debit to Bonds Payable, $500,000

c. Credit to Premium on Bonds Payable, $20,000

d. Credit to Cash, $500,000

Watch Solution

When a company increases accounts payable from one year to the next, the effect on cash flows

A) is a decrease in cash caused by paying down our debt to vendors.

B) is an increase in cash because we have not paid cash for all the inventory and services purchased on credit during the period.

C) is a decrease to cash because we will have to pay these liabilities in the future.

D) is an increase to cash because we have received cash from vendors.

Watch Solution

Matlock Co. reported net income of $10,000 on its income statement for the year ended December 31, 2012. During 2012, accounts receivable decreases by $4,000, merchandise inventory decreased by $6,000, accounts payable increased by $2,000, and depreciation expense was $8,000. Matlock's net cash flow from operating activities was:

A. $10,000

B. $18,000

C. $19,000

D. $30,000

Watch Solution

The balance sheet of Warner Co. showed the following data about its common stock, par $10.

Authorized shares               100,000

Outstanding shares               55,000

Issued shares                       60,000

The number of treasury shares was:

A. 40,000

B. 45,000

C. 30,000

D. 5,000

Watch Solution

What is the correct entry for the sale of 200 shares of $10 par value preferred stock for $5,000?

A. Dr. Cash $5,000; Cr. Preferred Stock $5,000

B. Dr. Cash $2,000; Cr. Preferred Stock $2,000

C. Dr. Preferred Stock $2,000,Contributed Capital in Excess of Par $3,000; Cr. Cash $5,000

D. Dr. Cash $5,000; Cr. Preferred Stock $2,000, Contributed Capital in Excess of Par $3,000 

Watch Solution

View all