eBook Print Question 1 Not yet answered Marked out of 200 P Flag question Assume a firm has 10,000 shares of common stock and a par value is $1. What is the effect of a 2-for-1 stock split on the par value and the number of shares outstanding and what is the journal entry? Select one: a. The par value increases to $2, the number of shares outstanding decreases to 5,000, and there is no journal entry. b. The par value decreases to $0.50, the number of shares outstanding increases to 20,000, and there is no journal entry c. The par value increases to $2, the number of shares outstanding decreases to 5.000, and the journal entry is [Dr. Common Stock 10,000 Cr. Paid-in Capital - Common Stock 10,000) d. The par value decreases to $0.50, the number of shares outstanding increases to 20,000, and the journal entry is [Dr. Retained earnings 10,000 Cr. Common stock 10,000). O eBook Print O 2 Not yet answered Marked out of 2.00 P Fag question On March 1, Firm Acquired 10,000 of its own common shares at $20 per share as treasury stock. On August 1, Firm A resold a quarter of the shares held as treasury stock for $22. What is the journal entry the firm makes on August 17 Select one: a Cash 50,000 (2,500 shares x 520) 50,000 (2,500 shares x 520) Support Treasury Stock b. Treasury Stock 50,000 (2,500 shares x $22) Additional Paid in Capital - CS5,000 (2,500 shares x 52) Cash 55,000 2,500 shares x $22) Cash Treasury Stock 55.000 (2,500 shares x $22) 55.000 (2.500 shares x 522) d Cash Treasury Stock Additional Paid in Capital CS 55,000 (2,500 shares X $22) 50,000 (2,500 shares x $20) 5,000 (2.500 shares x $2) Question 3 Not yet antwered Marked out of 2.00 P Fog question Firm Ahas 10,000 shares of common stock outstanding with a par value of $1. At year end, the firm declares a 10% stock dividend. The market price of the stock on the declaration date is $10. What are the journal entries on the declaration date? Select one: a Retained Earnings Stock Dividends Distributable Additional Paid-in Capital - Common Stock 11,000 ($1,000+ $10,000) 1,000 (10,000 shares x 10% x $1) 10,000 (10,000 shares x 10% x 510) b Retained Earnings Stock Dividends Distributable Additional Paid.in Capital - Common Stock 10,000 (10,000 shares x 10%x510) 1.000 (10,000 shares x 104 x 51) 9,000 ($10,000 - $1,000) Retained Earnings Stock Dividends Distributable 1,000 (10,000 shares x 10m x $1) 1.000 (10,000 shares x 10 x 51) Stock Dividends Distributable Retained Earnings Additional Paid-in Capital - Common Stock 10,000 (10,000 shares x 10% x $10) 1,000 (10,000 shares x 10% x $1) 9.000 ($10,000 - $1.000) Question 4 Not yet answered Married out of 200 Prag question Firm A has 10,000 shares of common stock outstanding with a par value of $1. At year end, the firm declares a 40% stock dividend. The market price of the stock on the declaration date is 510. What are the journal entries on the declaration date? Select one: Retained Earnings Stock Dividends Distributable Additional Paid-in Capital - Common Stock 40,000 (10,000 shares x 10% x 510) 4,000 (10,000 shares x 40% x 51) 36,000 (540,000 - 54,000) b. Retained earnings Stock Dividends Distributable 4,000 (10,000 shares x 40% X 51) 4,000 (10,000 shares x 40% x 51) Stock Dividends Distributable Retained Earnings Additional Paid-in Capital - Common Stock 40,000 (10,000 shares x 40% x 510) 4,000 (10,000 shares x 40% 36,000 (540,000 - 54,000) $1) d Retained Earnings Stock Dividends Distributable Additional Paid in Capital - Common Stock $4.000 (10,000 shares x 40% X 51) 1,600 (54,000 X 40%) 2,400 (54,000 - $1,600) From the following Shareholder's equity section of a firm's financial statements, determine how many common shares are outstanding as of December 31, 2012? Stockholders' Equity Preferred stock, without par value cumulative; 23,000,000 shares authorized: issued at December 31, 2012 and 2011: $4.50 Series 1,673,000 shares (callable at S120) 167 $3.50 Series 700,000 shares (callable at S102) 20 Common stock, S.30 par value: 1,800,000,000 shares authorized: issued at December 31, 2012 - 1.020,057,000; 2011 - 1,013,164,000 306 Additional paid-in capital 10,632 Reinvested camins 14,286 Accumulated other comprehensive loss (8,646) Common stock held in treasury, ut con (Shares: December 31, 2012 and 2011 87,041,000) (6,727) Totul DuPont stockholders' equity 10,088 Noncontrolling interests 91 Total quity 10,179 Select one: 2.933,016,000 (1,020,057,000 - 87,041,000) b.935,389.000 (1.020,057,000 - 1,673,000 - 700,000 - 87,041,0001 c.926,123,000 (1.013,164,000 - 87,041,000) d.1,823,000,000 (23,000,000 + 1,800,000,000)