Question Sheet HA 121 Final Exam
Which of the following entries would be recorded when a company reissues 1,000 shares
of treasury stock for $25 per share when they were reacquired at a cost of $22 per share
and have a $1 par value?
Paid in capital, treasury stock
Gain on sale of stock
Paid in capital, common stock
Investment income on treasury stock
Amortization of a premium on a held-to-maturity investment increases interest revenue.
The sales revenue reported on the income statement for 20A totaled $96,000, of which
one third was on credit. The 20A beginning balance of accounts receivable was zero and
the 20A ending balance reported on the balance sheet was $10,000; therefore, the 20A
cash inflow from customer sales was $86,000.
At the end of 20C, Allen Corporation reported a retained earnings credit balance of
$50,000. During 20D, Allen reported the following amounts: Cash dividends declared
and paid $15,000, net income of $35,000, and a $5,000 prior period adjustment (debit).
The 20D ending balance of total retained earnings was