40.
Employees who receive stock options as compensation:
41.
During 2016, Thomas Corporation repurchased some shares of its own common stock. What
effect did this transaction have on 2016 stockholders’ equity and earnings per share,
respectively?
Stockholders’ Equity
Earnings Per Share
A.
Decrease
No effect
B.
Increase
No effect
C.
Decrease
Decrease
D.
Decrease
Increase
42.
Rye Company has provided the following information:
• Number of issued common shares, 225,000
• Net income, $500,000
• Number of authorized common shares, 400,000
• Number of treasury shares, 25,000
What is Rye’s earnings per share (EPS)?
43.
Kirova Company has provided the following information:
• Number of issued common shares, 900,000
• Net income, $1,000,000
• Number of authorized common shares, 1,000,000
• Number of outstanding common shares, 800,000
• Number of treasury shares, 100,000
What is Kirova’s earnings per share (EPS)?
44.
Which of the following statements about earnings per share (EPS) is correct?
45.
Which of the following statements incorrectly describes earnings per share (EPS)?
46.
Which of the following statements about earnings per share (EPS) is correct?
47.
RKJ Company has provided the following information:
• 100,000 shares of $5 par value common stock are authorized
• 70,000 shares have been issued
• 65,000 shares are outstanding
Which of the following statements is correct?
48.
RKJ Company has provided the following information:
• 100,000 shares of $5 par value common stock are authorized
• 70,000 shares have been issued
• 65,000 shares are outstanding
Which of the following statements is correct?
49.
RKJ Company has provided the following information:
• 100,000 shares of $5 par value common stock are authorized
• 70,000 shares have been issued
• 65,000 shares are outstanding
The 70,000 shares of issued common stock were issued for $9 per share.
Which of the following statements is correct?
50.
CGJ Company has provided the following:
• 200,000 shares of $5 par value common stock are authorized
• 140,000 shares of common stock were issued for $11 per share
• 130,000 shares are outstanding
Which of the following statements is false?
51.
Which of the following journal entries does not reflect the initial cash sale of shares of
common stock?
52.
Which of the following journal entries is correct when no-par common stock is initially issued
for cash?
53.
Which of the following journal entries is correct when common stock is initially issued for cash
at a price in excess of the stock’s stated value?
54.
Irish Corporation issued (sold) 10,000 shares of common stock for $70 per share. The bylaws
established a stated value of $10 per share. What is the amount of increase in the common
stock account as a result of this transaction?
55.
A company repurchased shares of its common stock for $19,000. The stock was initially
issued for $12,000 and had a $5,000 par value. Which of the following statements correctly
describes the effects of the repurchase of company’s common stock shares?
56.
A company purchased 1,000 shares of treasury stock for $38,000 cash. The shares were
initially issued for $24,000 and had a $9,000 par value. Which of the following statements
incorrectly describes the effect of the treasury stock purchase?
57.
Which of the following statements correctly describes a treasury stock transaction?
58.
Which of the following statements about treasury stock transactions is correct?
59.
On February 1, 2015, Cue Company acquired 1,000 shares of its $1 par value stock for $47 per
share and held these shares in treasury. On April 10, 2016, Cue resold all the treasury shares
for $50 per share. Which of the following entries would be recorded when Cue Company
resells the shares of treasury stock?
60.
On October 1, 2015, Adoll Company acquired 1,000 shares of its $1 par value stock for $44 per
share and held these shares in treasury. On March 1, 2017, Adoll resold all the treasury shares
for $40 per share. Which of the following entries would be recorded when Adoll Company
resells the shares of treasury stock?
61.
Which of the following statements is false?
62.
CBA Company reported total stockholders’ equity of $85,000 on its balance sheet dated
December 31, 2016. During the year ended December 31, 2017, CBA reported net income of
$10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for
$20,000. What is total stockholders’ equity as of December 31, 2017?
63.
A company reported the following asset and liability balances at the end of 2015 and 2016:
2015
2016
Total Assets
$6,800,000
$7,600,000
Total Liabilities
3,200,000
3,600,000
During 2016, cash dividends of $50,000 were declared and paid, and common stock was
issued for $100,000. What was the amount of net income for 2016?