1. Birch issued 200 shares of $12 par common stock in exchangefor a piece of equ

1. Birch issued 200 shares of $12 par common stock in exchangefor a piece of equipment with a currentmarket value of $3000. Which of the following is not part of thejournal entry for this transaction?2. A company has $56000 in cash; $12000 in accounts receivable;$25000 in short-term investments;and $100000 in merchandise inventory. The company also has $60000in current liabilities. Thecompanys quick ratio is3. What is the rate of return on common stockholders equity ifsales are $100000 net income is $22700and average common stockholders equity is $86000?6. Cost of goods sold for the year was $850000. Inventory was$60000 at the beginning of the year and$90000 at the end of the year. There were no changes in the amountin accounts payable for the year.Cash payment for merchandise to be reported under the direct methodis