1. <\/b> The trial balance of Houston Inc. includes the following balances: Common Stock, $28,000; Paid-in Capital in Excess of Par, $64,000; Treasury Stock, $6,000; Preferred Stock, $30,000. Capital stock totals (Points : 2) $58,000.<\/p>\n
$96,000.<\/p>\n
$122,000.<\/p>\n
$128,000.<\/p>\n
Question 2.
\n2. <\/b> Under IFRS, the term reserves relates to each of the following except (Points : 2) asset revaluations.<\/p>\n
contributed (paid-in) capital.<\/p>\n
fair value differences.<\/p>\n
retained earnings.<\/p>\n
Question 3.
\n3. <\/b> Five thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The entry to record this transaction will include a (Points : 2) credit to Treasury Stock for $100,000.<\/p>\n
debit to Paid-In Capital from Treasury Stock for $30,000.<\/p>\n
debit to Treasury Stock for $70,000.<\/p>\n
credit to Paid-In Capital from Treasury Stock for $30,000.<\/p>\n
Question 4.
\n4. <\/b> Which of the following is not true of a corporation? (Points : 2) It may buy, own, and sell property.<\/p>\n
It may sue and be sued.<\/p>\n
The acts of its owners bind the corporation.<\/p>\n
It may enter into binding legal contracts in its own name.<\/p>\n
Question 5.
\n5. <\/b> If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000, (Points : 2) Common Stock will be credited for $140,000.<\/p>\n
Paid-In Capital in Excess of Par will be credited for $20,000.<\/p>\n
Paid-In Capital in Excess of Par will be credited for $120,000.<\/p>\n
Cash will be debited for $120,000.<\/p>\n
Question 6.
\n6. <\/b> Bacon Corporation began business by issuing 150,000 shares of $5 par value common stock for $25 per share. During its first year, the corporation sustained a net loss of $25,000. The year-end balance sheet would show (Points : 2) Common stock of $750,000.<\/p>\n
Common stock of $3,750,000.<\/p>\n
Total paid-in capital of $3,725,000.<\/p>\n
Total paid-in capital of $775,000.<\/p>\n
Question 7.
\n7. <\/b> A corporation has the following account balances: Common stock, $1 par value, $60,000; Paid-in Capital in Excess of Par, $1,300,000. Based on this information, the (Points : 2) legal capital is $1,360,000.<\/p>\n
number of shares issued are 60,000.<\/p>\n
number of shares outstanding are 1,360,000.<\/p>\n
average price per share issued is $22.50.<\/p>\n
Question 8.
\n8. <\/b> Crain Company issued 2,000 shares of its $5 par value common stock in payment of its attorney’s bill of $40,000. The bill was for services performed in helping the company incorporate. Crain should record this transaction by debiting (Points : 2) Legal Expense for $10,000.<\/p>\n
Legal Expense for $40,000.<\/p>\n
Organization Expense for $10,000.<\/p>\n
Organization Expense for $40,000.<\/p>\n
Question 9.
\n9. <\/b> Treasury stock is generally accounted for by the (Points : 2) cost method.<\/p>\n
market value method.<\/p>\n
par value method.<\/p>\n
stated value method.<\/p>\n
Question 10.
\n10. <\/b> If no-par stock is issued without a stated value, then (Points : 2) the par value is automatically $1 per share.<\/p>\n
the entire proceeds are considered to be legal capital.<\/p>\n
there is no legal capital.<\/p>\n
the corporation is automatically in violation of its state charter.<\/p>\n","protected":false},"excerpt":{"rendered":"
1. The trial balance of Houston Inc. includes the following balances: Common Stock, $28,000; Paid-in Capital in Excess of Par, $64,000; Treasury Stock, $6,000; Preferred Stock, $30,000. Capital stock totals (Points : 2) $58,000. $96,000. $122,000. $128,000. Question 2. 2. Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50970","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=50970"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50970\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=50970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=50970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=50970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}