MULTIPLE CHOICE:

1. On January 1, Vermont Corporation had 47,200 shares of $10 par value common stock issued and outstanding. All 47,200 shares had been issued in a prior period at $20 per share. On February 1, Vermont purchased 1,150 shares of treasury stock for $25 per share and later sold the treasury shares for $19 per share on March 1.

The journal entry to record the purchase of the treasury shares on February 1 would include a

a.debit to a loss account for $5,750

b.credit to a gain account for $5,750

c.credit to Treasury Stock for $28,750

d.debit to Treasury Stock for $28,750

5. Kansas Company acquired a building valued at $169,000 for property tax purposes in exchange for 12,000 shares of its $4 par common stock. The stock is widely traded and selling for $16 per share. At what amount should the building be recorded by Kansas Company?

a.$192,000

b.$143,500

c.$48,000

d.$169,000

7. What is the total stockholders' equity based on the following account balances?

Common Stock	$346,900
Paid-In Capital in Excess of Par	40,900
Retained Earnings	175,560
Treasury Stock	26,600

a.$589,960

b.$563,360

c.$536,760

d.$387,800

9. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

a.$10,000

b.$80,000

c.$100,00

d.$90,000

10. Nexis Corp. issues 2,070 shares of $11 par value common stock at $18 per share. When the transaction is recorded, credits are made to

a.Common Stock, $37,260.

b.Common Stock, $14,490 and Paid-In Capital in Excess of Stated Value, $22,770.

c.Common Stock, $14,490 and Retained Earnings, $22,770.

d.Common Stock, $22,770, and Paid-In Capital in Excess of ParCommon Stock, $14,490.

14. Dayton Corporation began the current year with a retained earnings balance of $18,320. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $2,809 on equipment. Also, during the current year, the company earned net income of $17,990 and declared cash dividends of $6,580. Compute the year-end retained earnings balance.

a.$29,730

b.$45,699

c.$26,921

d.$18,320