The board of directors of Capstone Incorporated declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock.What is the entry when the dividends are declared?TransactionAccount TitleDebitCreditA.Dividends9,000 Dividends Payable 9,000B.Dividends9,000 Cash 9,000C.Dividends12,000 Dividends Payable 12,000D.Dividends12,000 Cash 12,000

Consider the following items:(a) Decrease in accounts receivable(b) Issuance of common stock(c) Increase in interest receivable(d) Purchase of land(e) Decrease in accounts payable(f) Gain on the sale of equipment(g) Depreciation expense(h) Payment of dividends(i) Decrease in utilities payable(j) Increase in inventoryHow many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows?

We report dividends received as a financing activity.

On December 2, Coley Corporation acquired 1,000 shares of its $2 par value common stock for $27 each.On December 20, Coley Corporation resold 400 shares for $15 each. Which of the following is correct regarding the journal entry for the resold shares?

Crossroads Mall had 100,000 outstanding shares of common stock. On June 16, 2024, Crossroads bought back 20,000 shares of its own stock at $30 per share. On July 23, 2024, Crossroads resold 10,000 shares at $28 per share. What was the net effect on the balance sheet as a result of the two treasury stock transactions?

King Sporting Goods reports net income of $100,000, net sales of $500,000, and average assets of $1,000,000. The return on assets is:

Sitewide Company’s net income was $250,000. Given the account information below, what is the net cash flows from operating activities for Sitewide? Increase in accounts receivable$ 60,000Increase in salaries payable50,000Decrease in inventory30,000Depreciation expense45,000Increase in prepaid insurance3,000

A low inventory turnover ratio usually is a positive sign and indicates that inventory is selling quickly.

We use vertical analysis for income statement accounts, but not balance sheet accounts.

Which of the following behaviors is likely to experience spontaneous recovery during extinction?