Zoum Corporation Had the Following Transactions During 2017

question 135

Multiple Choice

Zoum Corporation had the following transactions during 2017:
1. Issued $250,000 of par value common stock for cash.
2. Recorded and paid wages expense of $120,000.
3. Acquired land by issuing common stock of par value $1,000,000.
4. Declared and paid a cash dividend of $20,000.
5. Sold a long-term investment (cost $6,000) for cash of $6,000.
6. Recorded cash sales of $800,000.
7. Bought inventory for cash of $320,000.
8. Acquired an investment in Zynga stock for cash of $42,000.
9. Converted bonds payable to common stock in the amount of $1,000,000.
10. Repaid a 6-year note payable in the amount of $440,000.
What is the net cash provided by investing activities?

• A)$864,000.
• B)$424,000
• C)($36,000).
• D)($136,000).

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Definitions:

Lease Modification

Changes made to the terms of a lease agreement, often involving negotiations between the lessee and lessor.

Bound Agreement

A legally binding contract or arrangement between parties.

Illusory Promise

An agreement that lacks a true commitment from the promisor, making it unenforceable as a contract.

Accord

An agreement between parties to settle a dispute or obligation.