Question Details

Evergreen Manufacturing Corporation




1.	Karl Corporation was organized on January 2, 2010. During 2013, Karl issued 20,000 shares at $24 per share, purchased 3,000 shares of treasury stock at $26 per share, and had net income of $300,000. What is the total amount of stockholders’ equity at December 31, 2013?
a.	$640,000
b.	$702,000
c.	$708,000
d.	$720,000


	2.	Evergreen Manufacturing Corporation purchased 4,000 shares of its own previously issued $10 par common stock for $92,000. As a result of this event,
a.	Evergreen- Common Stock account decreased $40,000.
b.	Evergreen- total stockholders’ equity decreased $92,000.
c.	Evergreen- Paid-in Capital in Excess of Par account decreased $52,000.
d.	All of the above.



3.	A corporation purchases 30,000 shares of its own $30 par common stock for $45 per share, recording it at cost. What will be the effect on total stockholders’ equity?
a.	Increase by $1,350,000
b.	Decrease by $900,000
c.	Decrease by $1,350,000
d.	Increase by $900,000



	4.	A corporation purchases 20,000 shares of its own $15 par common stock for $30 per share, recording it at cost. What will be the effect on total stockholders’ equity?
a.	Increase by $300,000
b.	Decrease by $600,000
c.	Increase by $600,000
d.	Decrease by $300,000


	5.	Ramos Corporation sold 200 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a
a.	credit to Gain on Sale of Treasury Stock for $7,000.
b.	credit to Paid-in Capital from Treasury Stock for $2,000.
c.	debit to Paid-in Capital in Excess of Par for $2,000.
d.	credit to Treasury Stock for $9,000.





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