Newton Corporation Entered into the Following Transactions During Its First

question 125

Multiple Choice

Newton Corporation entered into the following transactions during its first year of operations.(Assume all transactions involve cash.)
1) Acquired $2,000 of capital from the owners.
2) Purchased $600 of direct raw materials.
3) Used $400 of these direct raw materials in the production process.
4) Paid production workers $800 cash.
5) Paid $400 for manufacturing overhead (applied and actual overhead are the same) .
6) Started and completed 200 units of inventory.
7) Sold 50 units at a price of $12 each.
8) Paid $80 for selling and administrative expenses.
The amount of net income for the year was:

• A)$100.
• B)$75.
• C)$50.
• D)$120.

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Definitions:

Registered Offering

A securities offering that has been registered with the Securities and Exchange Commission, making it available to the public.

Prospective Investors

Individuals or entities that are potentially interested in investing in a particular security, property, or business opportunity but have not yet committed to the investment.

Post-Effective Period

The time after a regulatory document, such as a registration statement with the SEC, becomes effective, allowing for the actual offer and sale of securities.

Waiting Period

A predetermined time frame during which a specific action or process must be paused or delayed before proceeding further, often used in regulatory, health, or insurance contexts.