Multiple Choice Question 81

Concord Corporation issued 100000 shares of $10 par common stock for $1130000. A year later Concord acquired 15800 shares of its own common stock at $16 per share. Three months later Concord sold 7900 of these shares at $20 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 7900 treasury shares, Concord should credit

Treasury Stock for $126400 and Paid-in Capital in Excess of Par for $31600.

Treasury Stock for $79000 and Paid-in Capital from Treasury Stock for $79000.

Treasury Stock for $158000.

Treasury Stock for $126400 and Paid-in Capital from Treasury Stock for $31600.

Multiple Choice Question 133

On January 3, 2018, Concord Corporation owned a machine that had cost $405000. The accumulated depreciation was $243000, estimated salvage value was $24300, and fair value was $645000. On January 4, 2018, this machine was irreparably damaged by Pharoah and became worthless. In October 2018, a court awarded damages of $481000 against Pharoah in favor of Concord. At December 31, 2018, the final outcome of this case was awaiting appeal and was, therefore, uncertain. However, in the opinion of Concord's attorney, Pharoahs appeal will be denied. At December 31, 2018, what amount should Concord accrue for this gain contingency?

$402000.

$523500.

$0.

$645000.

Multiple Choice Question 103

Vaughn Manufacturing has $3130000 of short-term debt it expects to retire with proceeds from the sale of 81000 shares of common stock. If the stock is sold for $30 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities?

$2430000

$3130000

$700000

$0