Question

Pride sold inventory on account to a customer for $1,200. Pride originally paid $650 for the products. What should be included in Pride's journal entry to record this transaction?

• Credit cost of goods sold for $650

• Credit revenue for $1,200

• Credit inventory for $1,200

• Debit cash for $1,200

Which transaction would be reported as a cash inflow in the financing section of the statement of cash flows?

• A company's shareholders contributed cash to the company in exchange for common stock.

• A company purchased treasury stock.

• A company sold a piece of equipment.

• A company repaid a note payable to the bank.

• Below are the subtotals from the December 31, 2019 statements of cash flows from Jamison Company and Adams Company. Which company has a stronger statement of cash flows?

• 	Jamison Company	Adams Company
  Operating activities	$37,800	$1,250
  Investing activities	(6,250)	4,900
  Financing activities	(9,910)	15,490
  Net change in cash	$21,640	$21,640

Answer 1