Accounting Unit 2 (Clickr)

A company's own stock that is issued and re purposed is called:

Treasury Stock

A corporation has issued 250,000 shares of $100 par common stock and holds 3,000 shares as treasury stock. If the corporation declares a $2/share cash dividend, what amount is recorded as cash dividend payable?

$44,000 (25,000 - 3,000 = 22,000 x 2)

During the current year, merchandise sold for $3,200,000. The cost of goods sold is $2,688,00. What is the gross profit?

$512,000

Bush corporation authorized 100,000 shares of $25 per value common stock and issued 32,000 shares at $28. How much cash did Bush corporation receive from selling stock?

$896,000 (32,000 x 28)

A company issued 75,000 shares of $10 par common stock for $23/share. What is the total amount recorded for Additional Paid in Capital?

$975,000 (23 - 10 = 13 x 75,000)

A company reports $40 par common stock total to be $300,000 on the statement of stockholders Equity. How many shares have been issued?

7,500 shares

A company has determined it will pay a cash dividend. On which date is a liability recorded?

Date of Declaration

A company reacquires 18,000 shares of its own $50 par stock for $2,250,000. What affect does this transaction have?

Decreases Equity

A company reacquires 18,000 shares of its own $50 par stock for $2,250,000. The company repurchased the shares for $50 per share:

False

A company has Paid-in-Capital when which of the following takes place:

Sells and resells its own stock to the public