1-)Please refer to the following information for PeartreeCompany: ⢠Common stock, $1.00 par, 100,000 issued, 95,000outstanding ⢠Paid-in capital in excess of par: $2,150,000 â¢Retained earnings: $910,000 ⢠Treasury stock: 5,000 sharespurchased at $20 per share If Peartree resold 1,000 shares oftreasury stock for $24 per share, what journal entry would berequired?
A) Debit Cash $24,000 and credit Treasury stock $24,000.
B) Debit Treasury stock $24,000 and credit Cash $24,000.
C) Debit Treasury stock $20,000, debit Paid-in capital $2,000and credit Cash $24,000.
D) Debit Cash $24,000, credit Treasury stock $20,000 and creditPaid-in capital $4,000.
2-)Which of the following is a common reason for companies toretire preferred stock?
A) To stop paying out dividends to preferred shareholders
B) To increase stockholders' equity
C) To reward the preferred shareholders
D) To make a profit on the retirement of preferred stock
3-)At January 1, 2014, Foxmore Company had 80,000 shares ofcommon stock outstanding and no preferred stock. During the year,they issued 40,000 additional shares of common stock. At December31, 2014, Foxmore had 120,000 shares of common stock outstanding,and no preferred stock. In addition, Foxmore reported the followingresults for the year 2014: Sales revenues from regular businessoperations $3,000,000 Cost of goods sold 900,000 Operating expensesfrom their regular business operations 600,000 Gain on disposal ofseveral items of property, plant & equipment 15,000 Income taxexpense on continuing operations 330,000 Loss on the termination ofa discontinued business segment, net of tax 120,000 Losses ondamage caused by earthquake, net of tax 280,000 At December 31,2014, how much is the earnings per share for income (loss) fromcontinuing operations? (Please round all calculations to thenearest cent.)
A) $(1.20)
B) $10.65 C)
$7.85
D) $11.85
4-)) A corporation has net income of $365,000 for the currentyear. It paid its required preferred dividend of $17,500 and had noother stock transactions during the year. The average number ofcommon shares outstanding during the year was 69,500. What is theearnings per share?
A) $1.00
B) $4.37
C) $5.84
D) $5.00
5-)Qtopia Company uses the direct method to prepare itsstatement of cash flows. It has reported sales revenues of $100,000on its income statement for the year 2012. If the balance inaccounts receivable has gone up by $4,000 during the year, then$4,000 will have to be added to $100,000 to calculate collectionsfrom customers. True or false
6-)Qtopia Company uses the direct method to prepare itsstatement of cash flows. It has reported operating expenses of$21,000 on its income statement for the year 2012. If the balancein accrued liabilities has gone up by $1,000 during the year, then$1,000 will have to be added to $21,000 as part of the process tocalculate payments to suppliers for operating expenses. true orfalse.
7-Please refer to the following information for Petra SalesCompany: ⢠Common stock, $1.00 par, 200,000 issued, 180,000outstanding ⢠Paid-in capital in excess of par: $1,600,000 â¢Retained earnings: $2,440,000 ⢠Treasury stock: 20,000 sharespurchased at $12 per share If Petra Sales sells 10,000 shares oftreasury stock at $14 per share, the company will record a gain onthe sale of treasury stock of $20,000. True or false
8- Public companies are required to publish financialstatements, but privately held companies are generally not requiredto do so.true or false
