Reference no: EM131797286

Assignment

1. The following partial information is taken from the comparative balance sheet of Levi Corporation:

Shareholders' equity	12/31/2016	12/31/2015
Common stock, $5 par value; 32 million shares authorized; 27 million   shares issued and 21 million shares outstanding at 12/31/2016; and   ____million shares issued and ____shares outstanding at 12/31/2015.	$135 million	$105 million
Additional paid-in capital on common stock	519 million	398 million
Retained earnings	196 million	156 million
Treasury common stock, at cost, 6 million shares at 12/31/2016 and 4   million shares at 12/31/2015	(87 million)	(33 million)
Total shareholders' equity	$763 million	$626 million

What was the average price of the additional treasury shares purchased by Levi during 2016? (Round your answer to 2 decimal places.)
$27.00 per share.
$14.50 per share.
$8.25 per share.
None of these answer choices is correct.

2. Roberto Corporation was organized on January 1, 2016. The firm was authorized to issue 96,000 shares of $5 par common stock. During 2016, Roberto had the following transactions relating to shareholders' equity:

Issued 9,400 shares of common stock at $5.50 per share.
Issued 20,900 shares of common stock at $9.00 per share.
Reported a net income of $104,000.
Paid dividends of $44,000.
Purchased 3,900 shares of treasury stock at $11.00 (part of the 20,900 shares issued at $9.00).

What is total shareholders' equity at the end of 2016?
$300,900.
$258,000.
$256,900.
$258,700.

3. As of December 31, 2016, Warner Corporation reported the following:

Dividends payable	$35,000
Treasury stock	540,000
Paid-in capital - share repurchase	35,000
Other paid-in capital accounts	5,500,000
Retained earnings	$4,500,000

During 2017, half of the treasury stock was resold for $210,000; net income was $540,000; cash dividends declared were $1,350,000; and stock dividends declared were $650,000.

What was shareholders' equity as of December 31, 2016?

$10,035,000.
$9,530,000.
$9,495,000.
$9,460,000.

4. As of December 31, 2016, Warner Corporation reported the following:

Dividends payable	$37,000
Treasury stock	770,000
Paid-in capital - share repurchase	37,000
Other paid-in capital accounts	5,700,000
Retained earnings	$4,700,000

During 2017, half of the treasury stock was resold for $274,000; net income was $770,000; cash dividends declared were $1,670,000; and stock dividends declared were $670,000.

What would shareholders' equity be as of December 31, 2017?

$10,041,000.
$9,152,000.
$9,041,000.
$6,370,000.

5. Yellow Enterprises reported the following ($ in 000s) as of December 31, 2016. All accounts have normal balances.

Deficit (debit balance in retained earnings)	2,400
Common stock	3,500
Paid-in capital-treasury stock	2,000
Treasury stock at cost	250
Paid-in capital-excess of par	30,900

During 2017 ($ in 000s), net income was $9,900; 25% of the treasury stock was resold for $560; cash dividends declared were $800; cash dividends paid were $460.

What ($ in 000s) was shareholders' equity as of December 31, 2017?
$43,190.
$43,410.
$43,650.
$44,410.

6. The shareholders' equity of Green Corporation includes $298,000 of $1 par common stock and $490,000 par value of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $59,000 in 2016 after paying $29,000 cash dividends in each of 2015 and 2014. What is the amount of dividends common shareholders will receive in 2016?
$14,100.
$44,900.
$24,700.
$39,600.

7. Rick Co. had 24 million shares of $2 par common stock outstanding at January 1, 2016. In October, 2016, Rick Co.'s Board of Directors declared and distributed a 2% common stock dividend when the market value of its common stock was $65 per share. In recording this transaction, Rick would:

Credit common stock for $31.20 million.
None of these answer choices correct.
Debit retained earnings for $31.20 million.
Credit paid-in capital - excess of par for $31.20 million.

8. Olsson Corporation received a check from its underwriters for $75 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $75 per share.

Which is the correct entry to record the issue of the stock?

Cash	75,000,000
Common stock		75,000,000

Cash	75,000,000
Common stock		5,000,000
Paid-in capital - excess of par		70,000,000

Cash	75,000,000
Deferred stock issue revenue		27,000,000
Common stock		5,000,000
Paid-in capital - excess of par		43,000,000

Cash	75,000,000
Stock issue expense		27,000,000
Stock contract receivable		48,000,000

9. Boxer Company owned 25,000 shares of King Company that were purchased in 2014 for $390,000. On May 1, 2016, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 53,000 shares of Boxer stock outstanding. The market value of the King stock was $21 per share on the date of declaration and $36 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?

$111,300.
$0.
$191,000.
$112,800.

10. On October 1, 2016, Chief Corporation declared and issued a 11% stock dividend. Before this date, Chief had 78,000 shares of $5 par common stock outstanding. The market value of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend, Chief's retained earnings will:

Decrease by $86,800.
Not change.
Increase by $85,800.
Decrease by $85,800.