Question 1

On January 2, Year 1, Torres Corporation issued 16,000 shares of $12 par-value common stock for $16 per share. Which of the following statements is true?

Accepted Answer

A)   The common stock account will increase by $256,000.
B)   The cash account will increase by $192,000.
C)   Total stockholders' equity will increase by $192,000.
D)   The paid-in capital in excess of par value account will increase by $64,000.E) None of the above
F) A) and B)

Question 2

Which of the following statements about the impact of treasury stock on the amounts reported on the balance sheet is correct?

Accepted Answer

A)   The balance in the treasury stock account increases paid-in capital.
B)   The balance in the treasury stock account reduces paid-in capital.
C)   The balance in the treasury stock account reduces total stockholders' equity.
D)   The balance in the treasury stock reduces retained earnings.E) C) and D)
F) A) and C)

Question 3

Curtain Company paid dividends of $7,000; $11,000; and $14,000 during Year 1, Year 2, and Year 3, respectively. The company had 1,400 shares of 7.0%, $100 par value preferred stock outstanding that paid a cumulative dividend. The amount of dividends received by the common shareholders during Year 3 would be:

Accepted Answer

A)   $9,800.
B)   $4,000.
C)   $2,600.
D)   $2,800.E) A) and B)
F) B) and C)

Question 4

Vailes Company reissued 200 shares of its treasury stock. The treasury stock originally cost $25 per share and was reissued for $35 per share. Which of the following accurately reflects how the reissue of the treasury stock would affect Vailes's financial statements?

Accepted Answer

A)   Choice A
B)   Choice B
C)   Choice C
D)   Choice DE) A) and B)
F) A) and C)

Exam 8: Proprietorships, Partnerships, and Corporations

Correct Answer
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Which of the following statements about the impact of treasury stock on the amounts reported on the balance sheet is correct?

Correct Answer
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Vailes Company reissued 200 shares of its treasury stock. The treasury stock originally cost $25 per share and was reissued for $35 per share. Which of the following accurately reflects how the reissue of the treasury stock would affect Vailes's financial statements?

Correct Answer
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On January 2, Year 1, Torres Corporation issued 16,000 shares of $12 par-value common stock for $16 per share. Which of the following statements is true?

Correct Answer
verified

Exam 8: Proprietorships, Partnerships, and Corporations

Correct AnswerverifiedShow Answer

Which of the following statements about the impact of treasury stock on the amounts reported on the balance sheet is correct?

Correct AnswerverifiedShow Answer

Vailes Company reissued 200 shares of its treasury stock. The treasury stock originally cost $25 per share and was reissued for $35 per share. Which of the following accurately reflects how the reissue of the treasury stock would affect Vailes's financial statements?

Correct AnswerverifiedShow Answer

On January 2, Year 1, Torres Corporation issued 16,000 shares of $12 par-value common stock for $16 per share. Which of the following statements is true?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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