Question :
121. A company with 100,000 authorized shares of $4 par common : 1234194
121. A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 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. $12,800
B. $19,200
C. $32,000
D. $48,800
122. treasury stock shares are
A. shares held by the U.S. Treasury Department
B. part of the total outstanding shares but not part of the total issued shares of a corporation
C. unissued shares that are held by the treasurer of the corporation
D. issued shares that are held by the treasurer of the corporation
123. Which statement below is not a reason for a corporation to buy back its own stock.
A. resale to employees
B. bonus to employees
C. for supporting the market price of the stock
D. to increase the shares outstanding
124. How is treasury stock shown on the balance sheet?
A. as an asset
B. as a decrease in stockholders’ equity
C. as an increase in stockholders’ equity
D. treasury stock is not shown on the balance sheet
125. On January 1, 20xx, Sunshine 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 $20.00 per share. On February 1, 20xx, Sunshine purchased 2,000 shares of treasury stock for $23 per share and later sold the treasury shares for $21 per share on March 1, 20xx.
The journal entry to record the purchase of the treasury shares on February 1, 20xx, would include a
A. credit to Treasury Stock for $46,000.
B. debit to Treasury Stock for $46,000.
C. debit to a loss account for $6,000
D. credit to a gain account for $6,000.
126. On January 1, 20xx, Sunshine 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 $20.00 per share. On February 1, 20xx, Sunshine purchased 3,000 shares of treasury stock for $22 per share and later sold the treasury shares for $24 per share on March 1, 20xx.
The journal entry to record the purchase of the treasury shares on February 1, 20xx, would include a
A. credit to Treasury Stock for $66,000.
B. debit to Treasury Stock for $66,000.
C. debit to a loss account for $6,000
D. credit to a gain account for $6,000.
127. The excess of sales price of treasury stock over its cost should be credited to
A. Treasury Stock Receivable
B. Premium on Capital Stock
C. Paid-In Capital from Sale of Treasury Stock
D. Income from Sale of Treasury Stock
128. Treasury stock which was purchased for $2,000 is sold for $2,500. As a result of these two transactions combined
A. income will be increased by $500
B. stockholders’ equity will be increased by $2,500
C. stockholders’ equity will be increased by $500
D. stockholders’ equity will not change
129. Treasury stock that had been purchased for $5,400 last month was reissued this month for $7,500. The journal entry to record the reissuance would include a credit to
A. Treasury Stock for $7,500
B. Paid-In Capital from Treasury Stock for $7,500
C. Paid-In Capital in Excess of Par/Common for $2,100
D. Paid-In Capital from Treasury Stock for $2,100
130. A corporation purchased 1,000 shares of its $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized from the sale?
A. $0
B. $5,000
C. $2,500
D. $10,000
