Question : MULTIPLE CHOICE 5.              Hunter Corporation beginning of year retained earnings balance : 1370069

 

MULTIPLE CHOICE

 

5.              Hunter Corporation beginning of year retained earnings balance was $28,300.  The corporation declared and paid dividends of $19,400 during the year and ended the year with a $36,500 balance. The net income or loss for the year was:

A)$(11,200)

B)$  8,200

C)$ 17,100

D)$ 27,600

 

6.              Noncash assets given to a corporation in exchange for stock would be recorded at:

A)their book value when owned directly by the stockholder

B)cost less accumulated depreciation

C)fair market value

D)depreciable cost

 

 

7.              Carolina Corporation just issued 10,000 shares of $2 par value common stock for $7.50 per share. The journal entry to record this transaction will include a:

A)debit to Donated Capital for $75,000

B)credit to Common Stock for $75,000

C)debit to Retained Earnings for $20,000

D)credit to Paid-in-Capital in Excess of Par–Common Stock for $55,000

 

8.               Carolina Corporation just issued 10,000 shares of $2 par value common stock for $7.50 per share. The journal entry to record this transaction will include all of the following except:

A)debit to cash for $75,000

B)credit to Common Stock for $20,000

C)Credit to Retained Earnings for $75,000

D)credit to Paid-in-Capital in Excess of Par–Common Stock for $55,000

 

 

9.              The journal entry to record the issuance of nopar common stock could include all of the following except a:

A)debit to Cash

B)debit to Equipment

C)credit to Common Stock

D)credit to Paid-in-Capital in Excess of Par–Common Stock

 

 

10.                E&F Corporation issued 3,000 shares of $10 par value common stock in exchange for a tract of land valued at $135,000. Since all company stock is privately held, there is no market value for the stock. The journal entry to record this exchange includes a:

A)credit to Paid-in-Capital in Excess of Par–Common Stock for $105,000

B)credit to Common Stock for $135,000

C)debit to Donated Capital for $105,000

D)debit to Land for $30,000

 

11.               Mustang Corporation issued 5,000 shares of $1 par value common stock in exchange for a some equipment  with an asking price of $75,000. The stock was sold the day before at a price of $13 per share. The journal entry to record this exchange includes a:

A)credit to Paid-in-Capital in Excess of Par–Common Stock for $60,000

B)credit to Common Stock for $60,000

C)debit to equipment for $5,000

D)debit to equipment for $75,000

 

 

12.               Quality Corporation has 500,000 shares of $1 par value common stock authorized and 200,000 shares issued and outstanding. Land worth $100,000 received in exchange for 10,000 shares of common stock of the corporation would do all the following except:

A)increase the number of shares of common stock issued and outstanding to 210,000 shares

B)increase the total in the common stock account by $10,000

C)increase paid in capital in excess of par by $90,000

D)increase Retained Earnings by $100,000

 

13.               All of the following would reduce the balance in Retained Earnings except:

A)cash dividends

B)large stock dividends

C)small stock dividends

D)the acquisition of treasury stock

 

 

14.              When the Retained Earnings account has a debit balance, it is referred to as a:

A)loss

B)deficit

C)cumulative loss

D)donation of capital

 

 

 

 

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