Reference no: EM132490789

Question 1: RKJ Company has provided the following information:

1. 100,000 shares of $5 par value common stock are authorized
2. 80,000 shares have been issued
3. 75,000 shares are outstanding

Which of the following statements is correct?

Multiple Choice

RKJ can issue an additional 20,000 shares of common stock.
RKJ can issue an additional 25,000 shares of common stock.
RKJ has 25,000 shares of treasury stock.
RKJ has 20,000 shares of treasury stock.

Question 2: Irish Corporation issued (sold) 30,000 shares of common stock for $50 per share. The bylaws established a stated value of $10 per share. What is the amount of increase in the common stock account as a result of this transaction?

Multiple Choice

$1,200,000.
$0.
$1,500,000.
$300,000.

Question 3: Atkins Corporation has provided the following information for the year ended December 31, 2019:

1. The equipment account balance increased by $223,000 from the beginning of the year to the end of the year.
2. The equipment accumulated depreciation account balance increased by $37,300 from the beginning of the year to the end of the year.
3. Equipment costing $54,600 was sold during the year resulting in a $13,450 gain.
4. Depreciation expense recorded on the equipment during the year was $68,450.

Which of the following statements is correct with respect to determining cash flow from investing activities? Assume that the equipment purchase and sale resulted in cash flows.

Multiple Choice

A $54,600 cash outflow is reported for the equipment sale.
A $277,600 cash outflow is reported for equipment purchases.
A $68,050 cash inflow is reported from the equipment sale.
A $223,000 cash outflow is reported for equipment purchases.