Question :
75. Bravo Bistro, Inc.The stockholders’ equity section of the December 31, : 1224817
75. Bravo Bistro, Inc.The stockholders’ equity section of the December 31, 2011, balance sheet for Bravo Bistro appeared as follows:
Common stock, $3 par, 2,000 shares issued and outstanding
$ 6,000
Additional paid-in capital
1,000
Retained earnings
5,400
Total stockholders’ equity
$12,400
Assume that all of the 2,000 shares of Bravo’s stock that was issued as of December 31, 2011, was issued for $3.50 per share. On March 1, 2012, Bravo reacquired 1,000 shares of its common stock for $4.50 per share. Refer to the information presented above for Bravo Bistro, Inc. The journal entry to record the transaction on March 1 includes a credit to what account and for what amount? A. $3,000 to paid-in capital from treasury stock transactionsB. $4,500 to treasury stockC. $3,000 to common stockD. $4,500 to cash
76. Bravo Bistro, Inc.The stockholders’ equity section of the December 31, 2011, balance sheet for Bravo Bistro appeared as follows:
Common stock, $3 par, 2,000 shares issued and outstanding
$ 6,000
Additional paid-in capital
1,000
Retained earnings
5,400
Total stockholders’ equity
$12,400
Assume that all of the 2,000 shares of Bravo’s stock that was issued as of December 31, 2011, was issued for $3.50 per share. On March 1, 2012, Bravo reacquired 1,000 shares of its common stock for $4.50 per share. Refer to the information presented above for Bravo Bistro, Inc. If all of the 1,000 shares that Bravo Bistro repurchased on March 1 were later reissued for $5.00 per share, the journal entry to record this transaction includes a debit to what account and for what amount? A. $4,000 to additional paid-in capital from treasury stock transactionsB. $2,000 to treasury stockC. $500 to retained earningsD. $5,000 to cash
77. Murton IndustriesMurton Industries, Inc. reported the following information on its recent balance sheet.Common stock, $10 par, 100,000 shares authorized, 75,000 shares issued and outstanding Refer to the information for Murton Industries. What is the effect on Murton’s accounting equation of issuing 1,000 additional shares of common stock at $15 per share? A. Assets increase $15,000, liabilities increase $5,000, and equity increases $10,000B. Assets increase $15,000, liabilities remain unaffected, and equity increases $15,000C. Assets decrease $10,000, liabilities remain unaffected, and equity increases $10,000D. Assets decrease $15,000, liabilities decrease $5,000, and equity decrease $10,000
78. Murton IndustriesMurton Industries, Inc. reported the following information on its recent balance sheet.Common stock, $10 par, 100,000 shares authorized, 75,000 shares issued and outstanding Refer to the information for Murton Industries. What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the stock dividend is declared? A. A stock dividend has no impact on any of the stockholders’ equity accounts.B. Total stockholders’ equity increases $75,000.C. Cash increases $300,000.D. Retained earnings decreases by $225,000.
79. Murton IndustriesMurton Industries, Inc. reported the following information on its recent balance sheet.Common stock, $10 par, 100,000 shares authorized, 75,000 shares issued and outstanding Refer to the information for Murton Industries. What is the effect of a 2-for-1 stock split if the market value of the common stock is $20 per share at the time the stock split is declared? A. A stock split has no impact on any of the stockholders’ equity account balances.B. Total stockholders’ equity increases $750,000.C. Cash increases $750,000.D. $1,500,000 of retained earnings is transferred to the capital stock accounts.
80. Coral Cleaners, Inc.Coral Cleaners reported the following information in the stockholders’ equity section of its December 31, 2011, balance sheet.
7% Cumulative, non-participating preferred stock, $100 par, 500
shares authorized, issued, and outstanding, callable at par value
$ 50,000
Common stock, $12 par, 100,000 shares authorized
600,000
Additional paid-in capital
25,000
Retained earnings
825,000
Refer to the information presented above for Coral Cleaners, Inc. Coral’s total capital stock is: A. $ 650,000.B. $ 675,000.C. $ 625,000.D. $1,500,000.
81. Coral Cleaners, Inc.Coral Cleaners reported the following information in the stockholders’ equity section of its December 31, 2011, balance sheet.
7% Cumulative, non-participating preferred stock, $100 par, 500
shares authorized, issued, and outstanding, callable at par value
$ 50,000
Common stock, $12 par, 100,000 shares authorized
600,000
Additional paid-in capital
25,000
Retained earnings
825,000
Refer to the information presented above for Coral Cleaners, Inc. What is the number of shares of common stock issued and outstanding? A. 50,000 sharesB. 100,000 sharesC. 6,000 sharesD. 5,000 shares
82. Coral Cleaners, Inc.Coral Cleaners reported the following information in the stockholders’ equity section of its December 31, 2011, balance sheet.
7% Cumulative, non-participating preferred stock, $100 par, 500
shares authorized, issued, and outstanding, callable at par value
$ 50,000
Common stock, $12 par, 100,000 shares authorized
600,000
Additional paid-in capital
25,000
Retained earnings
825,000
Refer to the information presented above for Coral Cleaners, Inc. If Coral repurchased 500 shares of its common stock for $20 per share, what is the amount of total stockholders’ equity after this transaction? A. $1,510,000B. $1,500,000C. $1,494,000D. $1,490,000
83. Melisch, Inc.The following information is available pertaining to the stockholders’ equity accounts for Melisch, Inc.
Common stock, $7 par, 100,000 shares authorized
$700,000
Additional paid-in capital
160,000
Retained earnings
??
Treasury stock, 2,000 shares at cost
(16,000)
Total Stockholders’ Equity
$974,000
Refer to the information presented above for Melisch, Inc. What is the amount of Melisch’s retained earnings? A. $98,000B. $114,000C. $130,000D. $860,000
84. Melisch, Inc.The following information is available pertaining to the stockholders’ equity accounts for Melisch, Inc.
Common stock, $7 par, 100,000 shares authorized
$700,000
Additional paid-in capital
160,000
Retained earnings
??
Treasury stock, 2,000 shares at cost
(16,000)
Total Stockholders’ Equity
$974,000
Refer to the information presented above for Melisch, Inc. How many shares of common stock are outstanding? A. 68,000 sharesB. 78,000 sharesC. 98,000 sharesD. 100,000 shares
