Reference no: EM132939058

Questions -

Q1. The following totals for the month of June were taken from the payroll register of Arcon Company:

Salaries expense $14,100.00

Social security and Medicare taxes withheld 1,057.50

Income taxes withheld 276.00

Retirement savings 599.00

The entry to record the payment of net pay would include a

a. credit to Salaries Expense for $12,167.50

b. debit to Salaries Payable for $12,167.50

c. debit to Salaries Payable for $14,100.00

d. credit to Salaries Payable for $12,167.50

Q2. A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 per share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

a. $12,800

b. $32,000

c. $48,800

d. $19,200

Q3. The charter of a corporation provides for the issuance of 120,000 shares of common stock. Assume that 50,000 shares were originally issued and 4,200 were subsequently reacquired. What is the number of shares outstanding?

a. 54,200

b. 45,800

c. 4,200

d. 50,000

Q4. What is the total stockholders' equity based on the following account balances?

Common Stock $555,900

Paid-In Capital in Excess of Par 35,600

Retained Earnings 173,940

Treasury Stock 24,100

a. $591,500

b. $789,540

c. $741,340

d. $765,440

Q5. If Dakota Company issues 2,400 shares of $10 par common stock for $52,800,

a. Common Stock will be credited for $52,800.

b. Paid-In Capital in Excess of Par will be credited for $24,000.

c. Paid-In Capital in Excess of Par will be credited for $28,800.

d. Cash will be debited for $24,000.

Q6. When Wisconsin Corporation was formed on January 1, the corporate charter provided for 82,700 shares of $6 par value common stock. During its first month of operation, the corporation issued 7,810 shares of stock at a price of $27 per share.

The journal entry for this transaction would include a

a. debit to Cash for $46,860

b. credit to Common Stock for $210,870

c. credit to Paid-In Capital in Excess of Par-Common Stock for $164,010

d. debit to Common Stock for $82,700

Q7. Dayton Corporation began the current year with a retained earnings balance of $14,886. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,909 on equipment. Also, during the current year, the company earned net income of $16,122 and declared cash dividends of $4,126. Compute the year-end retained earnings balance.

a. $14,886

b. $22,973

c. $26,882

d. $39,043