Question : 141. The Dayton Corporation began the current year with a retained : 1246561

141. The Dayton Corporation began the current year with a retained earnings balance of $25,000.  During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment.  Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000.  Compute the year end retained earnings balance. 
A. $29,000
B. $35,000
C. $39,000
D. $45,000

142. What is the total stockholders’ equity based on the following data?

Common Stock

$510,000

Excess of Issue Price Over Par

375,000

Retained Earnings (deficit)

50,000

 
A. $935,000
B. $885,000
C. $835,000
D. $560,000

143. Treasury stock should be reported in the financial statements of a corporation as a(n) 
A. investment.
B. liability.
C. deduction from total paid-in capital.
D. deduction from total paid-in capital and retained earnings.

144. The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a  
A. liquidating dividend
B. stock split
C. stock option
D. preferred dividend

145. A corporation has 40,000 shares of $25 par value stock outstanding.  If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be  
A. 120,000 shares
B. 40,000 shares
C. 80,000 shares
D. 13,333 shares

146. When a corporation completes a 3-for-1 stock split  
A. the ownership interest of current stockholders is decreased
B. the market price per share of the stock is decreased
C. the par value per share is decreased
D. b and c

147. A corporation has 50,000 shares of $28 par value stock outstanding that has a current market value of $150.  If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately  
A. $7
B. $112
C. $37.50
D. $600

148. The primary purpose of a stock split is to  
A. increase paid-in capital
B. reduce the market price of the stock per share
C. increase the market price of the stock per share
D. increase retained earnings

149. A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8.  Subsequently, the company declared a 2% stock dividend on a date when the market price was $11 a share.  What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend? 
A. $3,200
B. $6,400
C. $4,800
D. $8,800

150. A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9.  Subsequently, the company declared a 2% stock dividend on a date when the market price was $10 a share.  The effect of the declaration and issuance of the stock dividend is to  
A. decrease retained earnings, increase common stock, and increase paid-in capital
B. increase retained earnings, decrease common stock, and decrease paid-in capital
C. increase retained earnings, decrease common stock, and increase paid-in capital
D. decrease retained earnings, increase common stock, and decrease paid-in capital