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
