QUESTION 1 Use the following information to answer questions 1 4 The Stockholders Equity accounts of a corporation on January 1, 2015, were as follows Preferred Stock (5 , $10 par, cumulative, 5,000 shares authorized) $ 35,000 Common Stock ($5 par, 500,000 shares authorized) 750,000 Additional Paid in Capital Preferred 205,800 Additional Paid inCapital Common 2,220,000 Retained Earnings 857,000 During 2015, the corporation had the following transactions and events relating to its stockholders equity Jan 2 Purchased 2,500 shares of its own common stock to add to the Treasury at a cost of $53,750 Feb 21 Issued 10,000 shares of common stock in exchange for a building On the date of the exchange, the FMV of the building was $212,000 and the stock was trading at $20 25 per share Mar 21 Sold 1,000 shares of treasury stock common for $24 per share Nov 14 Issued 500 shares of preferred stock for $36,000 Dec 31 Determined that net income for the year was $226,000 Dividends were declared and paid during December These dividends included a $0 20 per share dividend to common stockholders of record as of December 20 There are no dividends in arrears 1 How many shares of common stock are outstanding as of December 31, 2015 A 160,000 B 506,500 C 508,000 D 468,000 E 158,500 1 points QUESTION 2 Using the information from above 2 The journal entry to record the March 21 st sale of Treasury Stock would include a A credit to Treasury Stock of $21,500 B debit to Additional Paid in Capital Treasury Stock of $2,500 C credit to Treasury Stock of $24,000 D debit to Common Stock of $21,500 E credit to Additional Paid in Capital Treasury Stock of $3,000 1 points QUESTION 3 Using the information from above 3 What is total amount of dividends declared and paid in 2015 A $34,000 B $31,700 C $33,700 D $32,000 E $38,800 1 points QUESTION 4 Using the information from above 4 What is total stockholders' equity as of December 31, 2015 A $4,467,350 B $4,502,550 C $4,470,350 D $4,468,850 E $4,533,350 1 points QUESTION 5 Mark the following statements as true or false and select the appropriate answer below Par value has no relationship to market value of stock Stock splits reduce total stockholders equity and assets Treasury stock is listed on the balance sheet as either a marketable security or LT investment, depending when the company plans to sell it A True, True, True B True, False, True C True, False, False D False, True, True E False, False, False

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QUESTION 1

Use the following information to answer questions 1-4.

The Stockholders Equity accounts of a corporation on January 1, 2015, were as follows:

Preferred Stock (5%, $10 par, cumulative, 5,000 shares authorized) $ 35,000

Common Stock ($5 par, 500,000 shares authorized) 750,000

Additional Paid in Capital Preferred 205,800

Additional Paid inCapital Common 2,220,000

Retained Earnings 857,000

During 2015, the corporation had the following transactions and events relating to its stockholders equity.

Jan. 2 Purchased 2,500 shares of its own common stock to add to the Treasury at a cost of $53,750.

Feb. 21 Issued 10,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the building was $212,000 and the stock was trading at $20.25 per share.

Mar. 21 Sold 1,000 shares of treasury stock common for $24 per share.

Nov. 14 Issued 500 shares of preferred stock for $36,000.

Dec. 31 Determined that net income for the year was $226,000. Dividends were declared and paid during December. These dividends included a $0.20 per share dividend to common stockholders of record as of December 20. There are no dividends in arrears.

1. How many shares of common stock are outstanding as of December 31, 2015?

A.
160,000

B.
506,500

C.
508,000

D.
468,000

E.
158,500

1 points

QUESTION 2

Using the information from above...

2. The journal entry to record the March 21^st sale of Treasury Stock would include a:

	A.	credit to Treasury Stock of $21,500
	B.	debit to Additional Paid in Capital - Treasury Stock of $2,500
	C.	credit to Treasury Stock of $24,000
	D.	debit to Common Stock of $21,500
	E.	credit to Additional Paid in Capital - Treasury Stock of $3,000

1 points

QUESTION 3

Using the information from above...

3. What is total amount of dividends declared and paid in 2015?

A.
$34,000

B.
$31,700

C.
$33,700

D.
$32,000

E.
$38,800

1 points

QUESTION 4

Using the information from above...

4. What is total stockholders' equity as of December 31, 2015?

A.
$4,467,350

B.
$4,502,550

C.
$4,470,350

D.
$4,468,850

E.
$4,533,350

1 points

QUESTION 5