Question 1

If Global Publishing had reacquired 16,000 shares of treasury stock early in 2009, then some treasury stock must have been sold during 2009 for:

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Question 2

What was the average issue price per share of preferred stock?

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Question 3

How many shares of common stock are outstanding?

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Question 4

Which of the following situations would not be presented in a separate section of the current year's income statement of Hamilton Corporation? (More than one answer may be correct.) During the current year:

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Question 5

Assume all remaining treasury stock is reissued at a price of $24 per share in January of 2011. Prepare the journal entry to record this transaction:

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Question 6

When a corporation has outstanding both common and preferred stock:

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Question 7

Which of the following is (are) not true about a stock dividend?

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Question 8

A small stock dividend of 20,000 shares was declared and distributed during 2010. What was the market price per share on the date of declaration?

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Question 9

Shown below is information relating to operations of R. Brook, Inc for the current year:
Continuing operations:
 
In the space provided, complete the income statement for R. Brook, Inc., including earnings per share figures. R. Brook, Inc. has 100,000 shares of a single class of common stock outstanding throughout the year.
R. BROOK, INC.
Condensed Income Statement
For the Year Ended December 31, 2009

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Question 10

If Xanadu Fashions had reacquired 35,000 shares of treasury stock early in 2010, compute the price per share for which the reissued treasury stock was sold.

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Question 11

The statement of retained earnings:

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The statement of retained earnings includes prior period adjustments, cash dividends, and stock dividends. It shows the changes in the beginning and ending balances of retained earnings for the accounting period.

Answer: C 
 The statement of retained earnings does not need to be prepared if a separate statement of stockholders' equity accompanies the financial statements. However, if the statement of stockholders' equity does not provide a detailed breakdown of changes in retained earnings, then a separate statement of retained earnings must be prepared.

Therefore, the answer is A and C.

Question 12

The primary purpose of showing special types of events separately in the income statement is to:

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Showing special types of events separately in the income statement helps users distinguish the results of ongoing, normal operations from those of unusual events such as discontinued operations or extraordinary items. This makes it easier to evaluate the profitability of the company's ongoing operations.

Question 13

Assume that all remaining treasury stock is reissued at a price of $18 per share in January of 2010. What amount should be credited to the account Additional Paid-in Capital: Treasury Stock Transactions in the journal entry to record this transaction?

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Quiz 12: Income and Changes in Retained Earnings