Question 11

Green Corp. declares a 25% stock dividend to its shareholders on 2/10. On that date, the company had 800,000 shares issued, 700,000 of which were outstanding (100,000 were held in treasury). Green Corp. common stock has a par value of $1 and a fair market value of $88 Green Corp. distributed the stock the dividend to its shareholders on 2/28. On 3/15 Green Corp. declares a 3 for 1 stock split.

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What journal entry will Green Corp. record on 3/15, when the stock split is declared?

Question 11 options:

Dr. Common Stock $700,000

Cr. APIC $700,000

Dr. Common Stock $800,000

Cr. APIC $800,000

N/A; Stock splits do not impact net income.

Dr. Common Stock $61,600,000

Cr. APIC $61,600,000

Question 12

Green Corp. declares a 25% stock dividend to its shareholders on 2/10. On that date, the company had 800,000 shares issued, 700,000 of which were outstanding (100,000 were held in treasury). Green Corp. common stock has a par value of $1 and a fair market value of $88 Green Corp. distributed the stock the dividend to its shareholders on 2/28. On 3/15 Green Corp. declares a 3 for 1 stock split.

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What is the impact of the stock split on Green Corp.'s Net Income?

Question 12 options:

Green Corp.'s net income will be decreased by $800,000.

Green Corp.'s net income will be increased by $15,400,000.

Green Corp.'s net income will be reduced by $15,400,000.

Stock splits do not impact net income.

Green Corp.'s net income will be reduced by $700,000.

Question 13

On October 5, Jones and Sons purchases 8,500 shares of its own $2 par common stock for $78.95/share. On November 8, Jones and Sons reissues 4,000 shares when the fair market value of its stock climbed to $87.15/share. On December 11, Jones and Sons reissues the remaining 4,500 shares when the fair market value of its shared dropped to $66.43/share.

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What journal entry will Jones and Sons record on October 5 when it repurchases 8,500 of its shares?

Question 13 options:

Dr. Treasury Shares $17,000

Cr. Cash $17,000

Dr. Treasury Shares $740,775

Cr. Cash $740,775

Dr. Treasury Shares $671,075

Cr. Cash $671,075

N/A; No journal entry is required

Dr. Treasury Shares $564,655

Cr. Cash $564,655

Question 14

On October 5, Jones and Sons purchases 8,500 shares of its own $2 par common stock for $78.95/share. On November 8, Jones and Sons reissues 4,000 shares when the fair market value of its stock climbed to $87.15/share. On December 11, Jones and Sons reissues the remaining 4,500 shares when the fair market value of its shared dropped to $66.43/share.

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What journal entry will Jones and Sons record on November 8 when it reissues 4,000 of its shares?

Question 14 options:

Dr. Treasury Shares $315,000

Cr. Cash $315,000

Dr. Cash $348,600

Cr. Treasury Shares $348,600

Dr. Cash $348,600

Cr. Treasury Shares $315,800

Cr. APIC $32,800

N/A; No journal entry is required

Dr. Cash $315,800

Cr. Treasury Shares $315,800

Question 15

On October 5, Jones and Sons purchases 8,500 shares of its own $2 par common stock for $78.95/share. On November 8, Jones and Sons reissues 4,000 shares when the fair market value of its stock climbed to $87.15/share. On December 11, Jones and Sons reissues the remaining 4,500 shares when the fair market value of its shared dropped to $66.43/share.

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What journal entry will Jones and Sons record on December 11 when it reissues 4,500 of its shares?

Question 15 options:

Dr. Treasury Shares $355,275

Cr. Cash $355,275

N/A; No journal entry is required

Dr. Cash $355,275

Cr. Treasury Shares $355,275

Dr. Cash $298,935

Dr. APIC $56,340

Cr. Treasury Shares $355,275

Dr. Cash $355,275

Cr. Treasury Shares $355,275