Q.1 from the following information Prepare journal entries to record the issue of shares, declaration and payment of dividend
- on June 1, 2014. Jaguar & Co issued 50,000 shares of $10 each.
- The corporation has 500,000 shares outstanding. on January 1, 2015.
- on Jan 1, 2015The company declared$1 per share cash dividend to stockholders .
- January 10 is the date of record.
- On January 20, is the date of payment of dividend?
Q. 2 From the following information provided by the APPLE & Corp. calculate the net cash provided or used by investing activities:
(a) Building with a book value of $150,000 and an original cost of $300,000 was sold at a gain of $35,000.
(b) Purchased a new furniture for $ 60,000
(c) A machine costing $ 50,000 was sold for $ 45000. A loss of $5000 was incurred
(d) Issued shares of $ 100,000 for cash
(e) Long-term investments in stock are sold for $41,000 cash, realizing a gain of $3,500.
Q. 3 Discuss about the bond financing, and explain the advantages and disadvantages of bond financing.