1.

Wolfe Inc. had purchased 10,000 shares of treasury stock for $5 per share for a total cost of $50,000. The company reissues 4,000 of those treasury shares for $8 per share. The effect of this transaction will be:

Total assets increase by $32,000.

Total assets increase by $20,000.

There will be a gain on sale of treasury stock of $12,000.

Common Stock increases by $32,000.

2. On March 1, 2012, Ace Inc. purchased 100 shares of its own $5 par common stock for $10 per share. On June 2, 2012, Ace Inc. reissued 50 of the treasury shares for $12 per share. The correct entry to make on June 2 is:

Cash 600 Common Stock 600

Cash 600 Gain on sale of treasury Stock 100 Treasury Stock 500

Cash 600 PIC- treasury stock transactions 100 Treasury Stock 500

Cash 600 PIC in excess of par - common 350 Treasury Stock 250

3.

Witt Co. has 8,000 shares of treasury stock with a unit cost of $6 or total cost of $48,000. Witt Co. reissues 5,000 shares of treasury stock for $7 per share. The effect of this entry on the financial statements will be:

Total assets will increase by $40,000.

Total assets will increase by $35,000.

Net income will increase by $5,000.

Common Stock will increase by $35,000

4.

CCL Inc. shows the following information in its stockholders equity section of its balance sheet:

5% Preferred Stock, $50 par	$100,000
Common Stock, $2 par	400,000
Treasury Stock, $10 cost per share	50,000

What is the number of shares of common stock issued and outstanding?

Shares issued 202,000

Shares outstanding 200,000

Shares issued 200,000

Shares outstanding 200,000

Share issued 200 000

Shares outstanding 195,000

Shares issued 200,000

Shares outstanding 197,000