6. Flint Corp. issued 10,000 shares of no-par stock for $150,000. Flint was authorized to issue 25,000 shares.
What effect will this event have on the company's accounting equation?
A. Increase assets by $375,000 increase, equity by $375,000.
B. Increase assets by $150,000, increase net income by $150,000.
C. Increase assets by $150,000, increase equity by $150,000.
D. Both B and C.
7. Flint Company issued 2,000 shares of $10 par value common stock at a market price of $16. As a result of
this accounting event, the amount of stockholders' equity would
A. increase by $12,000.
B. be unaffected.
C. increase by $32,000.
D. increase by $20,000.
8. Madison Co. paid dividends of $3,000; $6,000; and $10,000 during 2007, 2008 and 2009, respectively. The
company had 500 shares of preferred stock outstanding that paid a $10 per share cumulative dividend. The
amount of dividends received by the common shareholders during 2009 would be:
9. On January 1, 2007, the Accounts Receivable balance was $9,000 and the balance in the Allowance for
Doubtful Accounts was $700. On January 15, 2007 a $200 uncollectible account was written-off. The net
realizable value of accounts receivable immediately after the write-off is: