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A corporation originally issued $5 par value stock for $6 per share. Which of the following would be included in the entry to record the reacquisition of 200 shares for $8 per share?  

a)            Treasury stock would be debited for $1,600.  

b)            Treasury stock would be credited for $1,600.  

c)            Retained earnings would be debited for $1,000. 

d)            Treasury stock would be debited for $1,000.  

 

 

57)          A corporation originally issued $8 par value stock for $9 per share. It reacquired the stock for $10 per share. Which of the following would be included in the entry to record the reissue of 20 shares for $11 per share?  

a)            Paid-in capital from treasury stock transactions is credited for $220.  

b)            Treasury stock is credited for $200.  

c)            Treasury stock is credited for $220.  

d)            Paid-in capital from treasury stock transactions is credited for $200.  

 

 

58)          Ross Corporation reported the following equity section on its current balance sheet.

                Common stock, $5 par, 140,000 shares authorized,

                                50,000 shares issued                                       $250,000

                Paid in capital in excess of par - common               200,000

                Retained earnings                                                           207,000

                Total stockholders equity                                            $657,000

Which of the following would be included in the entry to record the corporations purchase of 10,000 shares of its common stock for $7.50 per share?  

a)            Treasury stock would be debited for $75,000.  

b)            Paid-in capital from treasury stock transactions would be credited for $70,000.  

c)            Retained earnings would be debited for $75,000.  

d)            Common stock would be credited for $50,000  

 

 

59)          Ross Corporation reported the following equity section on its current balance sheet.

                Common stock, $5 par, 140,000 shares authorized,

                                50,000 shares issued                                       $250,000

                Paid in capital in excess of par - common               200,000

                Retained earnings                                                           207,000

                Total stockholders equity                                            $657,000

Which of the following would occur if the corporation purchased 15,000 share of its common stock for $9.50 per share?  

a)            Stockholders equity would increase by $142,500.  

b)            Stockholders equity would decrease by $75,000.  

c)            Stockholders equity would decrease by $142,500.  

d)            Stockholders equity would not increase nor decrease.  

 

 

60)          Ross Corporation reported the following equity section on its current balance sheet.

                Common stock, $5 par, 140,000 shares authorized,

                                50,000 shares issued                                       $250,000

                Paid in capital in excess of par - common               200,000

                Retained earnings                                                           207,000

                Total stockholders equity                                            $657,000

The corporation has acquired treasury stock for $10 per share. Which of the following would be included in the entry to record the corporations reissue of 8,000 shares of its common stock for $13 per share?  

a)            Paid-in capital from treasury stock transactions would be credited for $24,000.  

b)            Common stock would be credited for $104,000  

c)            Treasury stock would be debited for $104,000.  

d)            Retained earnings would be debited for $104,000.  

 

 

61)          Ross Corporation reported the following equity section on its current balance sheet.

                Common stock, $5 par, 140,000 shares authorized,

                                50,000 shares issued                                       $250,000

                Paid in capital in excess of par - common               200,000

                Retained earnings                                                           207,000

                Total stockholders equity                                            $657,000

 The corporation purchases 15,000 shares of its common stock at $9.50 per share. Which of the following is the number of common shares issued and the number of common shares outstanding?  

a)            There are 50,000 shares issued and $65,000 shares outstanding.  

b)            There are 50,000 shares issued and $35,000 shares outstanding.  

c)            There are 50,000 shares issued and $50,000 shares outstanding.  

d)            There are 65,000 shares issued and $50,000 shares outstanding.  

 

 

 

62)          Ross Corporation reported the following equity section on its current balance sheet.

                Common stock, $5 par, 140,000 shares authorized,

                                50,000 shares issued                                       $250,000

                Paid in capital in excess of par - common               200,000

                Retained earnings                                                           207,000

                Total stockholders equity                                            $657,000

The corporation has acquired treasury stock for $9.50 per share. No treasury stock has been reissued by the corporation. Which of the following would be included in the entry to record the reissue of 8,000 shares of the treasury stock for $8 per share?  

a)            Treasury stock would be debited for $76,000.  

b)            Retained earnings would be debited for $12,000.  

c)            Common stock would be credited for $40,000  

d)            Paid-in capital from treasury stock transactions would be credited for $64,000.  

 

 

63)          Which of the following occurs as the result of a retirement of common stock?  

a)            The number of shares of common stock outstanding decreases.  

b)            The balance in the common stock account increases.  

c)            The number of shares of common stock issued decreases.  

d)            Both A and C occur.  

 

 

 

64)          Which of the following statements is TRUE?  

a)            Restrictions on retained earnings reduce total assets on the balance sheet.  

b)            Restrictions on retained earnings are usually reported in the notes to the financial statements.  

c)            Restrictions on retained earnings are disclosed on the income statement.  

d)            None of these statements are true.  

 

 

65)          Which of the following would be included in the entry to record appropriated retained earnings for plant expansion?  

a)            Retained earnings appropriated for plant expansion would be debited.  

b)            Retained earnings would be credited.  

c)            Retained earnings would be debited.  

d)            Cash would be credited.  

 

 

66)          Which of the following is TRUE of a restriction or appropriation of retained earnings?  

a)            A restriction or appropriation of retained earnings decreases total retained earnings.  

b)            A restriction or appropriation of retained earnings decreases total assets.  

c)            A restriction or appropriation of retained earnings increases total retained earnings.  

d)            A restriction or appropriation of retained earnings does not affect total retained earnings.  

  

 

67)          Which of the following is TRUE of appropriations of retained earnings?  

a)            Appropriations of retained earnings must be accompanied by a credit to the cash account.  

b)            Appropriations of retained earnings are recorded by memorandum entries.  

c)            Appropriations of retained earnings are recorded by formal journal entries.  

d)            Appropriations of retained earnings are common.  

 

 

68)          Which of the following is the correct order of the sections of a multiple step income statement?  

a)            The correct order of the steps is income from discontinued operations, extraordinary items, income from continuing operations, and net income.  

b)            The correct order of the steps is income from discontinued operations, income from continuing operations, extraordinary items, and net income.  

c)            The correct order of the steps is income from continuing operations, extraordinary items, income from discontinued operations, and net income.  

d)            The correct order of the steps is income from continuing operations, income from discontinued operations, extraordinary items, and net income.  

 

 

 

69)          How would a gain on the sale of machinery be reported on an income statement?  

a)            A gain on the sale of machinery would be reported as an extraordinary gain.  

b)            A gain on the sale of machinery would be reported as a component of net sales.  

c)            A gain on the sale of machinery would be reported as a component of income from discontinued operations.  

d)            A gain on the sale of machinery would be reported as a component of income from continuing operations.  

 

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