Question 15 (7 points) 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. What journal entry will Jones and Sons record on December 11 when it reissues 4,500 of its shares? Dr. Treasury Shares $355,275 Cr. Cash $355,275 Dr. Cash $355,275 Cr. Treasury Shares $355,275 Dr. Cash $355,275 Cr. Treasury Shares $355,275 N/A; No journal entry is required Dr. Cash $298,935 Dr. APIC $56,340 Cr. Treasury Shares $355,275 Question 14 (7 points) 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. What journal entry will Jones and Sons record on November 8 when it reissues 4,000 of its shares? Dr. Cash $315,800 Cr. Treasury Shares $315,800 Dr. Cash $348,600 Cr. Treasury Shares $348,600 ON/A; No journal entry is required Dr. Cash $348,600 Cr. Treasury Shares $315,800 Cr. APIC $32,800 Dr. Treasury Shares $315,000 Cr. Cash $315,000 Question 13 (7 points) 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. What journal entry will Jones and Sons record on October 5 when it repurchases 8,500 of its shares? Dr. Treasury Shares $17,000 Cr. Cash $17,000 O N/A; No journal entry is required Dr. Treasury Shares $671,075 Cr. Cash $671,075 Dr. Treasury Shares $564,655 Cr. Cash $564,655 Dr. Treasury Shares $740,775 Cr. Cash $740,775 Question 12 (6 points) 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. What is the impact of the stock split on Green Corp.'s Net Income? Green Corp.'s net income will be decreased by $800,000. Green Corp's net income will be reduced by $700,000. 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. Question 11 (7 points) 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. What journal entry will Green Corp. record on 3/15, when the stock split is declared? Dr. Common Stock $700,000 Cr. APIC $700,000 N/A; Stock splits do not impact net income. Dr. Common Stock $800,000 Cr. APIC $800,000 Dr. Common Stock $61,600,000 Cr. APIC $61,600,000 Question 10 (6 points) 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. What is the impact of distributing the stock dividend on Green Corp.'s Net Income? Green Corp's net income will be increased by $ 700,000. Green Corp's net income will be increased by $15,400,000. Green Corp's net income will be reduced by $15,400,000. Green Corp.'s net income will be reduced by $700,000. Distributing a stock dividend does not impact net income. Question 9 (7 points) 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. What journal entry will Green Corp. record on 2/28, when the stock dividend is distributed? Dr. Stock Dividend Distributable $700,000 Cr. Common Stock $700,000 Dr. Stock Dividend Distributable $175,000 Cr. Cash $175,000 Dr. Stock Dividend Distributable $800,000 Cr. Common Stock $800,000 Dr. Stock Dividend Distributable $175,000 Cr. Common Stock $175,000 Question 8 (6 points) 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. What is the impact of declaring the stock dividend on Green Corp's Net Income? O Green Corp.s net income will be increased by $15,400,000. Green Corp's net income will be reduced by $700,000. Green Corp's net income will be increased by $700,000. Declaring a stock dividend does not impact net income. Green Corp.'s net income will be reduced by $15,400,000. Question 7 (7 points) 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. What journal entry will Green Corp. record on 2/10, when the stock dividend is declared? Dr. Stock Dividends $15,400,000 Cr. Common Stock $175,000 Cr. APIC $15,225,000 Dr. Stock Dividends $15,400,000 Cr. Stock Dividend Distributable $175,000 Cr. APIC $15,225,000 O Dr. Stock Dividends $61,600,000 Cr. Stock Dividend Distributable $700,000 Cr. APIC $60,900,000 Dr. Stock Dividends $17,600,000 Cr. Stock Dividend Distributable $200,000 Cr. APIC $17,400,000 Question 6 (6 points) On 4/15 Blue Corp. declares a $4.85 cash dividend. On that date, the company had 45,000 shares issued, 40,000 of which were outstanding (5,000 were held in treasury). Blue Corp. paid the dividend to its shareholders on 4/20. What is the impact of paying the cash dividend on Blue Corp's Net Income? Blue Corp.'s net income will be reduced by $218,250. O Paying a cash dividend does not impact net income. Blue Corp's net income will be reduced by $194,000. Blue Corps net income will be increased by $194,000. Blue Corp.'s net income will be increased by $218,250. Question 5 (7 points) On 4/15 Blue Corp. declares a $4.85 cash dividend. On that date, the company had 45,000 shares issued, 40,000 of which were outstanding (5,000 were held in treasury). Blue Corp. paid the dividend to its shareholders on 4/20. What journal entry will Blue Corp. record on 4/20, when the cash dividend is paid? Dr. Dividends Payable $194,000 Cr. Cash Dividends $194,000 Dr. Dividends Payable $194,000 Cr. Cash $194,000 Dr. Dividends Payable $218,250 Cr. Cash $218,250 O Dr. Dividends Payable $218,250 Cr. Cash Dividends $218,250 N/A; No journal entry is required. Question 4 (6 points) On 4/15 Blue Corp. declares a $4.85 cash dividend. On that date, the company had 45,000 shares issued, 40,000 of which were outstanding (5,000 were held in treasury). Blue Corp. paid the dividend to its shareholders on 4/20. What is the impact of declaring the cash dividend on Blue Corp.'s Net Income? Blue Corp.'s net income will be increased by $194,000. Blue Corp's net income will be reduced by $194,000. Declaring a cash dividend does not impact net income. Blue Corp.'s net income will be reduced by $218,250. Blue Corp.'s net income will be increased by $218,250. Question 3 (7 points) On 4/15 Blue Corp. declares a $4.85 cash dividend. On that date, the company had 45,000 shares issued, 40,000 of which were outstanding (5,000 were held in treasury). Blue Corp. paid the dividend to its shareholders on 4/20. What journal entry will Blue Corp. record on 4/15, when the cash dividend is declared? Dr. Cash Dividends $194,000 Cr. Dividends Payable $194,000 Dr. Stock Dividends $218,250 Cr. Dividends Payable $218,250 Dr. Cash Dividends $218,250 Cr. Dividends Payable $218,250 Dr. Stock Dividends $194,000 Cr. Dividends Payable $194,000 N/A; No journal entry is required. Question 2 (7 points) Cards, Inc. issues 15,000 common shares with a par value of $0.10 per share and a fair market value of $1.65/share to acquire Paper, Inc.'s assets having the following fair market values: Accounts Receivable $4,000 Inventory $15,750 Supplies $5,000 Please provide the journal entry Cards, Inc. will record upon the purchase of Paper, Inc.'s assets. Dr. Accounts Receivable $4,000 Dr. Inventory $15,750 Dr. Supplies $5,000 Cr. Common Stock $24.750 Dr. Accounts Receivable $4,000 Dr. Inventory $15,750 Dr. Supplies $5,000 Cr. Retained Earnings $24,75 Dr. Accounts Receivable $4,000 Dr. Inventory $15,750 Dr. Supplies $5,000 Cr. Common Stock $1,500 Cr. APIC $23,250 N/A; No journal entry is required. Question 1 (7 points) Pink Corp. is in need of cash. It decided to issue 1,000 shares of its $1 par value common stock. The current price of its common stock (the fair market value of the common stock) is $20 per share. Please provide the journal entry Pink Corp. will record upon issuance of its common stock. Dr. Cash $20,000 Cr. Common Stock $1,000 Cr. APIC $19,000 Dr. Cash $20,000 Cr. Common Stock $20,000 Dr. Cash $20,000 Cr. Retained Earnings $20,000 O N/A; No journal entry is required