Question : 147. Treasury stock classified as: A. An asset account.B. A contra asset account.C. A revenue : 1257676

147. Treasury stock is classified as: A. An asset account.B. A contra asset account.C. A revenue account.D. A contra equity account.E. A liability account.

148. The following data were reported by a corporation:  

Authorized shares ……..……………………..

20,000

Issued shares ……..…………………………..

15,000

Treasury shares ……..………………………..

3,000

The number of outstanding shares is: A. 12,000.B. 15,000.C. 17,000.D. 20,000.E. 23,000.

149. Corporations may buy back their own stock for any of the following reasons except to: A. Avoid a hostile take-over.B. Have shares available for a merger or acquisition.C. Have shares available for employee compensation.D. Maintain market value for the company stock.E. Allow management to assume the voting rights.

150. The following data has been collected about Keller Company’s stockholders’ equity accounts:  

Common stock $10 par value 20,000 shares

    authorized and 10,000 shares issued, 9,000 shares     outstanding…………………………

$100,000

Paid-in capital in excess of par value, common stock…..

50,000

Retained earnings……………………….

25,000

Treasury stock…………………………

11,500

Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is: A. $1.15.B. $1.28.C. $11.50.D. $10.50.E. $10.00.

151. The following data has been collected about Keller Company’s stockholders’ equity accounts:  

Common stock $10 par value 20,000 shares

    authorized and 10,000 shares issued, 9,000 shares outstanding…………………………..

$100,000

Paid-in capital in excess of par value, common stock…..

50,000

Retained earnings……………………….

25,000

Treasury stock…………………………

11,500

Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is: A. 1,150.B. 1,000.C. 575.D. 11,000.E. 21,000.

152. Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the balance in the Treasury Stock account on August 2? A. $5,050.B. $2,600.C. $100.D. $1,200.E. $0.

153. Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on May 1 for $5,000. On July 1, it reissued 50 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2? A. $5,050.B. $2,600.C. $100.D. $50.E. $0.

154. All of the following regarding accounting for Treasury Stock under U.S. GAAP and IRFSis true except: A. U. S. GAAP applies the principle that companies do not record gains or losses on transactions involving their own stock.B. Only gains are recognized on retirements of treasury stock under IFRS.C. IFRS applies the principle that companies do not record gains or losses on transactions involving their own stock.D. Gains are not recognized on retirements of treasury stock under U. S. GAAP.E. A company’s assets and equity are always reduced by the amount paid for the retiring stock.

155. Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8,000 shares in treasury stock. The journal entry to record the dividend declaration is: A. Debit Retained Earnings $104,500; credit Common Dividends Payable $104,500. B. Debit Common Dividends Payable $104,500; credit Cash $104,500.C. Debit Retained Earnings $100,100; credit Common Dividends Payable $100,100.D. Debit Common Dividends Payable $100,100; credit Cash $100,100. E. Debit Retained Earnings $110,000; credit Common Dividends Payable $110,000.

156. West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the dividend declaration is: A. Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000. B. Debit Common Dividends Payable $95,000; credit Cash $95,000.C. Debit Retained Earnings $5,000; credit Common Dividends Payable $5,000.D. Debit Common Dividends Payable $90,000; credit Cash $90,000. E. Debit Retained Earnings $95,000; credit Common Dividends Payable $95,000.