Question :
153.The sale of treasury stock cannot result in
a.
the crediting of : 1244167
153.The sale of treasury stock cannot result in
a.
the crediting of Paid-in Capital, Treasury Stock.
b.
an increase in Retained Earnings.
c.
the debiting of Paid-in Capital, Treasury Stock.
d.
an increase in total stockholders’ equity.
154.A company purchases 400 shares of its $50 par value common stock at $55 per share. It then reissues 60 shares at $58 per share. The entry upon reissue of the stock would include a credit to
a.
Treasury Stock, Common for $348.
b.
Retained Earnings for $480.
c.
Cash for $348.
d.
Paid-in Capital, Treasury Stock for $180.
155.On January 1, 20×7, Belmont Corporation had 50,000 shares of $10 par value common stock issued and outstanding. All 50,000 shares had been issued in a prior period at $15 per share. On February 1, 20×7, Belmont purchased 2,000 shares of treasury stock for $18 per share and later sold the treasury shares for $20 per share on March 2, 20×7. The entry to record the purchase of the treasury shares on February 1, 20×7, would include a
a.
loss of $6,000.
b.
gain of $6,000.
c.
debit to the Treasury Stock, Common account for $36,000.
d.
credit to the Treasury Stock, Common account for $36,000.
156.On January 1, 20×7, Belmont Corporation had 50,000 shares of $10 par value common stock issued and outstanding. All 50,000 shares had been issued in a prior period at $15 per share. On February 1, 20×7, Belmont purchased 2,000 shares of treasury stock for $18 per share and later sold the treasury shares for $20 per share on March 2, 20×7. The entry to record the sale of the treasury shares on March 2, 20×7, would include a
a.
credit to Retained Earnings for $4,000.
b.
debit to Retained Earnings for $6,000.
c.
credit to a gain account for $4,000.
d.
credit to Paid-in Capital, Treasury Stock for $4,000.
157.Use the following information to answer the question below.
The following transactions involving Lupine Corporation occurred during the year:
Apr. 1 Purchased 2,000 shares of its own preferred stock for $20, the current market price. This is the first transaction involving its own stock engaged in by the company.
May 3 Sold 400 of the shares purchased on April 1 for $25 per share.
June 5 Retired 600 of the shares purchased on April 1. The original issue price was $10. The par value of the stock is $5.
The entry to record the April 1 transaction would include a
a.
credit to Treasury Stock, Preferred for $40,000.
b.
debit to Cash for $40,000.
c.
debit to Treasury Stock, Preferred for $40,000.
d.
debit to Retained Earnings for $40,000.
158.Use the following information to answer the question below.
The following transactions involving Lupine Corporation occurred during the year:
Apr. 1 Purchased 2,000 shares of its own preferred stock for $20, the current market price. This is the first transaction involving its own stock engaged in by the company.
May 3 Sold 400 of the shares purchased on April 1 for $25 per share.
June 5 Retired 600 of the shares purchased on April 1. The original issue price was $10. The par value of the stock is $5.
The entry to record the May 3 transaction would include a
a.
credit to Cash for $10,000.
b.
credit to Paid-in Capital, Treasury Stock for $2,000.
c.
debit to Treasury Stock, Preferred for $8,000.
d.
debit to Retained Earnings for $6,000.
159.Use the following information to answer the question below.
The following transactions involving Lupine Corporation occurred during the year:
Apr. 1 Purchased 2,000 shares of its own preferred stock for $20, the current market price. This is the first transaction involving its own stock engaged in by the company.
May 3 Sold 400 of the shares purchased on April 1 for $25 per share.
June 5 Retired 600 of the shares purchased on April 1. The original issue price was $10. The par value of the stock is $5.
The entry to record the June 5 transaction would include a
a.
debit to Preferred Stock for $3,000.
b.
credit to Paid-in Capital for $3,000.
c.
credit to Treasury Stock, Preferred for $3,000.
d.
debit to Treasury Stock, Preferred for $6,000.
160.The purchase of treasury stock will result in
a.
a decrease in assets and a decrease in stockholders’ equity.
b.
no net changes in assets, liabilities, or stockholders’ equity.
c.
a decrease in one asset account and an increase in a different asset account.
d.
a decrease in assets and a decrease in liabilities.
161.If the entry to record the retirement of treasury stock contains a credit to a Paid-in Capital, Retirement of Stock account, it is apparent that the
a.
cost of the treasury shares was less than par value.
b.
cost of the treasury shares was greater than the original issuance price of the shares.
c.
cost of the treasury shares was less than the original issuance price of the shares.
d.
original issuance price of the shares was less than par value.
162.Use the following information to answer the question below.
On January 1, 20×7, Falcon Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $17 per share. On February 1, 20×7, Falcon purchased 2,900 shares of treasury stock for $19 per share and later sold the treasury shares for $26 per share on March 2, 20×7.
What amount of gain due to these treasury stock transactions should be reported on the income statement for the year ended December 31, 20×7?
a.
$0
b.
$20,300
c.
$2,030
d.
$2,900
163.Use the following information to answer the question below.
On January 1, 20×7, Falcon Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $17 per share. On February 1, 20×7, Falcon purchased 1,000 shares of treasury stock for $19 per share and later sold the treasury shares for $26 per share on March 2, 20×7.
The entry to record the sale of the treasury shares on March 2, 2007, would include a
a.
credit to a Paid-in Capital account for $7,000.
b.
credit to a gain account for $9,000.
c.
debit to Retained Earnings for $2,000.
d.
credit to Retained Earnings for $7,000.
164.According to generally accepted accounting principles, treasury stock should be recorded at
a.
expected reissue price.
b.
original issue price.
c.
cost.
d.
par or stated value.
165.On the balance sheet, treasury stock owned by the company is classified properly as
a.
an investment.
b.
a current asset.
c.
a note to the financial statements.
d.
a contra-stockholders’ equity item.
or Waypoint 
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