Answer the following Accounting questions:

a) Morgan Corporation repurchases 50,000 shares of its $0.01 par value common stock for $110 per share on June 30, 2021. On October 1, 2021, Morgan reissues 20,000 of these shares for $130 per share. What journal entry does Morgan make on October 1?

A.

Dr. Cash 2,600,000

Cr. Common Stock 2,200,000

Cr. Additional Paid in Capital 400,000

B.

Dr. Cash 2,600,000

Cr. Treasury Stock 200

Cr. Additional Paid in Capital 2,599,800

C.

Dr. Cash 2,600,000

Cr. Treasury Stock 2,200,000

Cr. Additional Paid in Capital 400,000

D.

Dr. Cash 2,600,000

Cr. Common Stock 200

Cr. Additional Paid in Capital 2,599,800

b) Cynet Corporation's balance sheet showed the following data about its $0.01 par value common stock: authorized shares = 40 million; unissued shares = 15 million; treasury shares = 6 million. The number of outstanding shares is:

A. 9 million outstanding shares

B. 19 million outstanding shares

C. 25 million outstanding shares

D. 21 million outstanding shares

c) Billiard Supply Company announces a 200% stock dividend. Prior to the stock dividend, Billiard Supply had 500,000 shares of common stock outstanding and the par value was $0.10 per share. After the stock dividend, Billiard Supply would have:

A. 1,000,000 outstanding shares with a par value of $0.30 per share.

B. 1,500,000 outstanding shares with a par value of $0.10 per share.

C. 500,000 outstanding shares with a par value of $0.10 per share.

D. 1,500,000 outstanding shares with a par value of $0.30 per share.

d) True or False: A stock split will cause the Common Stock account balance to increase.

e) Morgan Corportation repurchases 50,000 shares of its $0.01 par value common stock for $110 per share on June 30, 2021. On October 1, 2021, Morgan reissues 20,000 of these shares for $130 per share. What journal entry does Morgan make on June 30?

A.

Dr. Treasury Stock 5,500,000

Cr. Cash 5,500,000

B.

Dr. Cash 5,500,000

Cr. Treasury Stock 5,500,000

C.

Dr. Common Stock 5,500,000

Cr. Cash 5,500,000

D.

Dr. Treasury Stock 500

Dr. APIC 5,499,500

Cr. Cash 5,500,000