A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of income realized from the sale? a. $0 b. $5,000 c. $2,500 d. $10,000
____ 44. A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of income realized from the sale?
|
a. |
$0 |
|
b. |
$5,000 |
|
c. |
$2,500 |
|
d. |
$10,000 |
____ 45. A partner withdraws from a
|
a. |
will increase |
|
b. |
will decrease |
|
c. |
will remain the same |
|
d. |
may increase, decrease, or remain the same |
____ 46. What is the total
|
Common Stock |
$400,000 |
|
Paid-In Capital in Excess of Par |
40,000 |
|
Retained Earnings |
190,000 |
|
|
20,000 |
|
a. |
$640,000 |
|
b. |
$630,000 |
|
c. |
$610,000 |
|
d. |
$650,000 |
____ 47. X and Y have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of $90,000 is allocated to X?
|
a. |
$60,000 |
|
b. |
$43,000 |
|
c. |
$45,000 |
|
d. |
$47,000 |
____ 48. The entry to record the issuance of common stock at a price above par includes a debit to
|
a. |
Organizational Expenses |
|
b. |
Common Stock |
|
c. |
Cash |
|
d. |
Paid-In Capital in Excess of Par-Common Stock |
____ 49. A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?
|
a. |
$3,200 |
|
b. |
$6,400 |
|
c. |
$4,800 |
|
d. |
$8,800 |
____ 50. A partnership liquidation occurs when
|
a. |
a new partner is admitted |
|
b. |
a partner dies |
|
c. |
the ownership interest of one partner is sold to a new partner |
|
d. |
the assets are sold, liabilities paid, and business operations terminated |
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