Question : 151. Treasury stock classified as: A. An asset account. B. A contra asset account. C. A revenue : 1225262

151. 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.

152. The following data were reported by a corporation:

The number of outstanding shares is: 

A. 12,000.

B. 15,000.

C. 17,000.

D. 20,000.

E. 23,000.

153. Corporations often buy back their own stock: 

A. To avoid a hostile take-over.

B. To have shares available for a merger or acquisition.

C. To have shares available for employee compensation.

D. To maintain market value for the company stock.

E. All of these.

154. The retirement of stock: 

A. Reduces the number of issued shares.

B. Does not reduce the number of authorized shares.

C. Removes all paid-in capital amounts related to the retired shares.

D. Reduces retained earnings if the purchase price exceeds the net amount removed from paid-in capital.

E. All of these.

155. The following data has been collected about a company’s stockholders’ equity accounts:

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.

156. Prior to June 1, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on June 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.

157. All of the following regarding accounting for Treasury Stock under U.S. GAAP and IRFS are 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.

158. A 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.

159. A 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 payment of the dividend 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.

160. A 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 earnings per share is $4.53. The current market value of the stock is $20.00. The dividend yield is: 

A. 22.7%.

B. 12.1%.

C. 4.2%.

D. 3.9%.

E. 2.8%.