Question : Multiple Choice Questions 133. Beck Corporation declared a 2-for-1 common stock split, : 1229409

Multiple Choice Questions
 

133. Beck Corporation declared a 2-for-1 common stock split, but this transaction was erroneously recorded as a 100% common stock dividend. As a result: 
A. The common stock account is overstated.
B. The total dollar amount of stockholders’ equity is overstated.
C. The corporate records do not show the correct number of shares of common stock outstanding.
D. The par value per share is understated.

134. Fuller Mfg.’s financial statements for the current year include the following:
Income from continuing operations $663,200
Prior period adjustment (increase in prior-year net income, net of taxes) 180,000
Cash dividends paid to preferred stockholders 196,800
Gain from discontinued operations (net of taxes) 433,600
Extraordinary loss (net of tax benefit) 174,400
On the basis of this information, net income for the current year is: 
A. $488,800.
B. $922,400.
C. $725,600.
D. $1,102,400.

135. The following two items are disclosed in the stockholders’ equity section of Cort Corporation’s December 31, 2010, balance sheet:
Treasury stock (500 shares, at cost) $50,000
Additional paid-in capital: treasury stock transactions 22,500
If the company had reacquired 3,000 shares of treasury stock in February of 2010 then some of the treasury stock must have been sold during 2010 for: 
A. $9 per share above its par value.
B. $9 per share.
C. $109 per share.
D. $109 per share above its cost.

136. At the beginning of the current year, Bard Corporation had 400,000 shares of $1 par common stock outstanding and had retained earnings of $11,000,000. During the year, the company earned $5,000,000, declared a 5% stock dividend when the price of stock was $25 per share, and paid a year-end cash dividend of $2 per share. (The cash dividend was paid after the stock dividend had been distributed.) Bard Corporation’s retained earnings at the end of the year amount to: 
A. $16,000,000.
B. $14,660,000.
C. $14,320,000.
D. $14,700,000.

137. Donnell Corp. had 100,000 shares of 8% preferred stock, $100 par, and 500,000 shares of $1 par common stock outstanding throughout the year. Net income for the year was $4,800,000, and Donnell declared and distributed a cash dividend of $4 per share on its common stock. Earnings per share amounted to: 
A. $8.80.
B. $4.00.
C. $8.00.
D. $2.00.

The stockholders’ equity section of the balance sheet of Global Publishing at December 31, 2009, appears as follows:
  
Answer the following questions based on the stockholders’ equity section given above. The company had no treasury stock purchases before 2009.

138. What was the average issue price per share of preferred stock? 
A. $80.
B. $100.
C. $124.
D. $148.

139. How many shares of common stock are outstanding? 
A. 140,000.
B. 126,000.
C. 500,000.
D. 120,000.

140. A small stock dividend of 5,000 shares was declared and distributed during 2009. What was the market price per share on the date of declaration? 
A. $82 per share.
B. $80 per share.
C. $2 per share.
D. $78 per share.

141. If Global Publishing had reacquired 16,000 shares of treasury stock early in 2009, then some treasury stock must have been sold during 2009 for: 
A. $5 per share.
B. $8 per share.
C. $6 per share.
D. $16 per share.

142. Assume that all remaining treasury stock is reissued at a price of $18 per share in January of 2010. What amount should be credited to the account Additional Paid-in Capital: Treasury Stock Transactions in the journal entry to record this transaction? 
A. $96,000.
B. $140,000.
C. $112,000.
D. $288,000.