17 The total earnings of an employee for a payroll period is referred to as: take-home pay a. b. pay net of taxes net pay gross pay c. d. 18. The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called: a. treasury stock b. issued stock c. outstanding stock d. authorized stock 19 The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding? a. 5,000 b. 35,000 c. 45,000 d. 55,000 20. The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to: a. Organizational Expenses b. Goodwill c. Common Stock d. Cash 21. A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be: a. 160,000 shares b. 40,000 shares c. 120,000 shares d. 10,000 shares The liability for a dividend is recorded on which of the following dates? a b. the date of payment c. the date of announcement d. the date of declaration In which section of the balance sheet would Treasury Stock be reported? a. Fixed assets b. Long-term liabilities c. Stockholders' equity d. Intangible assets For 2006, net income is $250,000, shares outstanding are 80,000, and the market price is $24. What is the price-earnings ratio on common stock (round to one decimal point?) a. 3.1 22 the date ofrecord 3. . 7.7 b. c. 34.9 d. 2.5