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An entity authorized 500,000 shares of common stock. At January 1, year 2, the entity had 110,000 shares of common stock issued and 100,000 shares of common stock outstanding. The entity had the following transactions in year 2: March 1 Issued 15,000 shares of common stock June 1 Resold 2,500 shares of treasury stock September 1 Completed a 2-for-1 common stock split What is the total number of shares of common stock that the entity has outstanding at the end of year 2? A. 117,500 B. 230,000 C. 235,000 D. 250,000

(100,000 + 15,000 + 2,500)2 = 235,000 #15000的common stock要加两遍，issuance要算一遍，ost要算一遍#

Of the 125,000 shares of common stock issued by Vey Corp., 25,000 shares were held as treasury stock at December 31, 20X4. During 20X5, transactions involving Vey's common stock were as follows: January 1 through October 31 - 13,000 treasury shares were distributed to officers as part of a stock compensation plan. November 1 - A 3-for-1 stock split took effect. December 1 - Vey purchased 5,000 of its own shares to discourage an unfriendly takeover. These shares were not retired. At December 31, 20X5, how many shares of Vey's common stock were issued and outstanding? Shares Issued Shares Outstanding 375,000 334,000 375,000 324,000 334,000 334,000 324,000 324,000

375,000 334,000 Issuance: 125000*3=375000 Outstanding: Beg: 125-25 treasury=100 (100+13)*3-500=334

Jones Co. had 50,000 shares of $5 par value common stock outstanding at January 1. On August 1, Jones declared a 5% stock dividend followed by a two-for-one stock split on September 1. What amount should Jones report as common shares outstanding at December 31? A. 105,000 B. 100,000 C. 52,500 D. 50,000

A 5% stock dividend increases outstanding shares by 5%, and a 2-for-1 split doubles outstanding shares. The number of outstanding shares at year-end therefore is 105,000 = 50,000(1.05)(2). Each subsequent dividend or split compounds the previous change. #5%的dividend增加了OST# 105,000 = 50,000(1.05)(2）不是0.05

On July 1, 20x5, Cove Corp., a closely-held corporation, issued 6% bonds with a maturity value of $60,000, together with 1,000 shares of its $5 par value common stock, for a combined cash amount of $110,000. The market value of Cove's stock cannot be ascertained. If the bonds were issued separately, they would have sold for $40,000 on an 8% yield to maturity basis. What amount should Cove report for additional paid-in capital on the issuance of the stock? A. $75,000 B. $65,000 C. $55,000 D. $45,000

B. $65,000 Combine $110 - FMV of bond $40=Balance allocated common=70 Balance allocated common - Par to common= 70000-(5*1000)=65000

Stock inssuance When collectability is reasonably assured, the excess of the subscription price over the stated value of the no par common stock subscribed should be recorded as A. No par common stock. B. Additional paid-in capital when the subscription is recorded C. Additional paid-in capital when the subscription is collected D. Additional paid-in capital when the common stock is issued

B. Additional paid-in capital when the subscription is recorded Common stock subscribed is an owners' equity account that is replaced by common stock upon issuance. #Any additional paid-in capital is recorded when the contract is signed or recorded, just as if cash were received at that point.#

On April 1, 20x4, Hyde Corp., a newly formed company, had the following stock issued and outstanding: Common stock, no par, $1 stated value, 20,000 shares originally issued for $30 per share. Preferred stock, $10 par value, 6,000 shares originally issued for $50 per share. Hyde's April 1, 20x4 statement of stockholders' equity should report Common stock Preferred stock Additional paid-in capital $20,000 $60,000 $820,000 $20,000 $300,000 $580,000 $600,000 $300,000 $0 $600,000 $60,000 $240,000

Common $1*20000=20000 Preferred $10*6000=60000 Additional PIC Common (30-1)*20000=58000 Preferred ($50-10)*6000=240000 APIC 580+240=820

On September 1, 20x4, Hyde Corp., a newly formed company, had the following stock issued and outstanding: Common stock, no par, $1 stated value, 5,000 shares originally issued at $15 per share. Preferred stock, $10 par value, 1,500 shares originally issued for $25 per share. Hyde's September 1, 20x4 statement of stockholders' equity should report Common stock Additional Preferred stock Paid-in capital $5,000 $15,000 $92,500 $5,000 $37,500 $70,000 $75,000 $37,000 $0 $75,000 $15,000 $22,500

Common stock=5000 shares*$1Par =5000 Preferred= $10*1500=15000 Common stock: 5,000($1) = $5,000 (only par is recorded in common stock) Preferred stock: 1,500($10) = $15,000 (only par is recorded in preferred stock) #Additional paid-in capital: Common: 5,000($15 - $1) = $70,000 Preferred: 1,500($25 - $10) = 22,500 Total additional paid-in capital $92,500# 两个都要重新减掉

Which of the following errors could result in an overstatement of both current assets and stockholders' equity? A. An understatement of accrued sales expenses. B. Noncurrent note receivable principal is misclassified as a current asset. C. Annual depreciation on manufacturing machinery is understated. D. Holiday pay expense for administrative employees is misclassified as manufacturing overhead

D. Holiday pay expense for administrative employees is misclassified as manufacturing overhead This error reduces expenses because part of the holiday pay will be held back in ending inventory, which is a current asset. Thus, net income, and therefore OE are overstated, as well as ending inventory, which is a current asset. Expense跟着一起overhead 这个错误会减少费用,因为假日工资的一部分将在期末存货,这是流动资产。因此,净收益,因此OE言过其实,以及期末存货,这是流动资产。

Nest Co. issued 100,000 shares of common stock. Of these, 5,000 were held as treasury stock at December 31, 20x4. During 20x5, transactions involving Nest's common stock were as follows: May 3 - 1,000 shares of treasury stock were sold. August 6 - 10,000 shares of previously unissued stock were sold. November 18 - A 2-for-1 stock split took effect. Laws in Nest's state of incorporation protect treasury stock from dilution. At December 31, 20x5, how many shares of Nest's common stock were issued and outstanding? Shares Issued Shares Outstanding 220,000 212,000 220,000 216,000 222,000 214,000 222,000 218,000

Issuance=220000 Outstanding: (100000-5000+1000+10000)*2=212

Rudd Corp. had 700,000 shares of common stock authorized and 300,000 shares outstanding at December 31, year 1. The following events occurred during year 2: January 31 Declared 10% stock dividend June 30 Purchased 100,000 shares August 1 Reissued 50,000 shares November 30 Declared 2-for-1 stock split At December 31, year 2, how many shares of common stock did Rudd have outstanding? A. 560,000 B. 600,000 C. 630,000 D. 660,000

Outstanding （300000*1.10-100000+50000）*2=560 #要加上dividend的钱#

On March 1, 20x5, Rya Corp. issued 1,000 shares of its $20 par value common stock and 2,000 shares of its $20 par value convertible preferred stock for a total of $80,000. At this date, Rya's common stock was selling for $36 per share, and the convertible preferred stock was selling for $27 per share. What amount of the proceeds should be allocated to Rya's convertible preferred stock? A. $60,000 B. $54,000 C. $48,000 D. $44,000

Preferred stock 2000*20=40000 Market value of common: 1,000($36) = $36,000 Market value of preferred: 2,000($27) = 54,000 Total market value $90,000 Allocation of proceeds to preferred = ($54,000/$90,000)$80,000 = $48,000 (preferred/Total)/Total

An individual contracts for the purchase of 200 shares of $10 par common stock at a subscription price of $15. After making payments totaling $1,200, the subscriber defaults. Shares are issued in proportion to the amount of cash paid by the investor. The summary journal entry to record the net effect of these two transactions includes: A. Debit share purchase contract receivable $1,800. B. Credit common stock $2,000 C. Credit paid in capital in excess of par on common, $400 D. Credit share purchase contract receivable $600

The net effect of the transactions is to receive cash of $1,200 and issue stock for that amount at $15/share; $1,200/$15 = 80 shares fully paid. Required net changes in balances are (1) common stock, 80($10) = $800, (2) PIC-CS, 80($15 - $10) = $400, (3) cash $1,200. The share purchase contract receivable account is opened and then closed for the same amount. There is no ending balance in that account. 1.先要知道一共多少shares $1,200/$15 = 80 shares fully paid 2. common stock, 80($10) = $800 PIC-CS, 80($15 - $10) = $400 cash $1,200 dr: cash 1200 cr; common stock 800 cr: APIC 400

Kamy Corp. is in liquidation under Chapter 7 of the Federal Bankruptcy Code. The bankruptcy trustee has established a new set of books for the bankruptcy estate. After assuming custody of the estate, the trustee discovered an unrecorded invoice of $1,000 for machinery repairs performed before the bankruptcy filing. In addition, a truck with a carrying amount of $20,000 was sold for $12,000 cash. This truck was bought and paid for in the year before the bankruptcy. What amount should be debited to estate equity as a result of these transactions? A. $0 B. $1,000 C. $8,000 D. $9,000

This amount is $9,000 ($1,000 repair cost + $8,000 loss on the truck). The $8,000 loss is the difference between the $20,000 carrying amount and the $12,000 proceeds. Carrying amount-Proceeds=Loss Loss+ repair cost= equity

At December 31, 20X5, Salo Corp.'s balance sheet accounts increased by the following amounts compared with those at the end of the prior year: Assets $178,000 Liabilities 54,000 Capital stock 120,000 Additional paid-in capital 12,000 The only charge to retained earnings during 20X5 was for a dividend payment of $26,000. Net income for 20X5 amounted to A. $34,000 B. $26,000 C. $18,000 D. $8,000

最后的total owners' equity for the year is $124,000 178-54 所有的contributed capital = APIC+ capital stock Contributed capital increased $132,000 ($120,000 + $12,000). The firm paid dividends of $26,000 Contributed capital+net income-dividend=final equity $132,000 + net income - $26,000 = $124,000 net income = $124,000 - $132,000 + $26,000 = $18,000