Land Corporation reported the following:
Which of the following is included in the entry to record the corporation's purchase of 40,000 shares of its common stock for $12.00 per share?
A) Treasury Stock—Common is debited for $480,000.
B) Paid-In Capital from Treasury Stock Transactions is credited for $135,000.
C) Retained Earnings is debited for $480,000.
D) Common Stock—$5 Par Value is credited for $200,000.
A) Treasury Stock—Common is debited for $480,000.
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Firefly Inc sold land for $225,000 cash. The land had been purchased five years earlier for $275,000 . The loss onthe sale was reported on the income statement. On the statement of cash flows, what amount should Firefly reportas an investing activity from the sale of the land?
a. $225,000 b. $275,000 c. $50,000 d. $500,000
Which of the following payments is considered preferential?
A. Payment made by an insolvent debtor within 250 days of the filing of the bankruptcy petition B. Payments made in the ordinary course of business C. Payment to a creditor giving him a greater percentage of a preexisting debt than other similar creditors D. Payment of monthly utility bills
On a statement of cash flows prepared using the direct method, if inventory has decreased from one accounting period to another, net purchases will be greater than the cost of goods sold because net purchases during the period have exceeded the dollar amount of the items sold during the period
Indicate whether the statement is true or false
When writing a communication to deny a customer claim, what can be done to help maintain a future relationship?
A) Providing a prompt response B) Explaining how to prevent similar issues in the future C) Use the word "you" frequently so the customer feels valued D) Lead the message with a clear statement of the bad news E) Helping the customer feel that the resolution was fair