Reference no: EM132490766

Question 1: A company reported total stockholders' equity of $336,000 on its balance sheet dated December 31, 2018. During the year ended December 31, 2019, the company reported net income of $41,400, declared and paid a cash dividend of $9,400, declared and distributed a 10% stock dividend with a $11,400 total market value, issued additional common stock for $56,000, and paid $13,400 to purchase treasury stock. What is total stockholders' equity as of December 31, 2019?

Multiple Choice

Option 1: $399,200.

Option 2: $424,000.

Option 3: $437,400.

Option 4: $410,600.

Question 2: A company's 2019 income statement reported total sales revenue of $1,650,000; accounts receivable increased by $34,000 and the unearned sales revenue account decreased $24,000 during 2019. How much cash was collected from customers during 2019?

Multiple Choice

Option 1: $1,592,000.

Option 2: $1,684,000.

Option 3: $1,626,000.

Option 4: $1,616,000.

Question 3: Young Company is involved in a lawsuit. When would the lawsuit be recorded as a liability on the balance sheet?

Multiple Choice

Option 1: When the loss probability is reasonably possible and the amount can be reasonably estimated.

Option 2: When the loss probability is remote and the amount can be reasonably estimated.

Option 3: When the loss is probable regardless of whether the loss can be reasonably estimated.

Option 4: When the loss is probable and the amount can be reasonably estimated.