Question : 84. Thurman Corporation issued 450,000 shares of $.50 par value capital : 1229372

84. Thurman Corporation issued 450,000 shares of $.50 par value capital stock at its date of incorporation for cash at a price of $4 per share. During the first year of operations, the company earned $100,000 and declared a dividend of $40,000. At the end of this first year of operations, the balance of the Common Stock account is: 
A. $1,800,000.
B. $1,860,000.
C. $225,000.
D. $1,820,000.

85. Century Corporation issued 400,000 shares of $4 par value common stock at the time of its incorporation. The stock was issued for cash at a price of $16 per share. During the first year of operations, the company sustained a net loss of $100,000. The year-end balance sheet would show the balance of the Common Stock account to be: 
A. $1,600,000.
B. $1,500,000.
C. $6,300,000.
D. $6,400,000.

86. Mayfair Corporation has outstanding 70,000 shares of $1 par value common stock as well as 20,000 shares of 7%, $100 par value cumulative preferred stock. At the beginning of the year, the balance in retained earnings was $800,000, and one year’s dividends were in arrears. Net income for the current year is $580,000. Compute the balance in retained earnings at the end of the year if Mayfair Corporation pays a dividend of $3 per share on its common stock this year. 
A. $1,080,000.
B. $1,670,000.
C. $890,000.
D. $310,000.

87. Shore and Gardiner each own 10,000 shares of S&G Corporation $12 par value stock which they purchased for $38 per share directly from the corporation. If Shore sells his stock to Gardiner for $475,000: 
A. Stockholders’ equity of S&G Corporation increases.
B. Assets of S&G Corporation increase.
C. Stockholders’ equity of S&G Corporation decreases.
D. No account of S&G Corporation is affected.

88. Coronet Corp. has total stockholders’ equity of $7,400,000. The company’s outstanding capital stock includes 100,000 shares of $10 par value common stock and 20,000 shares of 6%, $100 par value preferred stock. (No dividends are in arrears.) The book value per share of common stock is: 
A. $39.
B. $49.
C. $54.
D. $74.

89. Marks Corporation has total stockholders’ equity of $7,400,000. The company has outstanding 300,000 shares of $1 par value common stock and 20,000 shares of 8% preferred stock, $100 par value. (No dividends are in arrears.) The book value per share of common stock is: 
A. $9.00.
B. $24.06.
C. $24.66.
D. $18.00.

90. Seville Corporation has net assets of $2,072,000 and paid-in capital of $700,000. The only stock issue consists of 74,000 outstanding shares of common stock. From this information, it can be deduced that the company has: 
A. Retained earnings of $2,072,000.
B. A deficit of $2,072,000.
C. A book value of $9.46 per share of common stock.
D. A book value of $28 per share of common stock.

91. Santa Fe Boat Yard has total stockholders’ equity of $4,100,000, comprised of the following:
  
Assuming there are no dividends in arrears, the book value per share of common stock is: 
A. $30.00.
B. $58.57.
C. $45.71.
D. $6.00.

On January 1, 2009, Juniper Corporation issued 60,000 shares of its total 200,000 authorized shares of $4 par value common stock for $8 per share. On December 31, 2009, Juniper Corporation’s common stock is trading at $12 per share.

92. Refer to the information above. Assuming Juniper Corporation did not issue any more common stock in 2009, how does the increase in value of its outstanding stock affect Juniper? 
A. Juniper should recognize additional net income for 2009 of $4 per share, or $240,000.
B. Paid-in capital at December 31, 2009, is $720,000 (i.e., 60,000 shares times $12 per share).
C. This increase in market value of outstanding stock is not recorded in the financial statements of Juniper Corporation.
D. Each shareholder must pay an additional $4 per share to Jupiter.

93. Refer to the information above. Assume Juniper Corporation decides to issue an additional 1,000 shares of its common stock on December 31, 2009. How will the above increase in value affect Juniper? 
A. Juniper can issue the 1,000 shares at a higher price than the initial 60,000 shares.
B. Juniper can sell the 1,000 shares for $12 each, as well as collect an additional $4 per share for each of the 60,000 shares sold initially.
C. Juniper reports a gain of $4 per share on all stock sold during the year.
D. Paid-in capital at the end of 2009 will be $732,000 (i.e., 61,000 shares times $12 per share).

Shown below is information relating to the stockholders’ equity of Grant Corporation at December 31, 2009:
  
Dividends have been declared and paid for 2009.