When the selling price of treasury stock is greater

19. When the selling price of treasury stock is greater than its cost, the company credits the
difference to
A. Gain on Sale of Treasury Stock
B. Paid-in Capital from Treasury Stock
C. Paid-in Capital in Excess of Par Value
D. Treasury Stock
20. The purchase of treasury stock

D. has no effect on common stock outstanding
21. Marsh Company has other operating expenses of $240,000. There has been an increase in
prepaid expenses of $16,000 during the year, and accrued liabilities are $24,000 lower than in
the prior period. Using the direct method of reporting cash flows from operating activities, what
were Marsh's cash payments for operating expenses?
22. Where would the event purchased land for cash appear, if at all, on the indirect statement of
cash flows?
23. In performing a vertical analysis, the base for cost of goods sold is
A. total selling expenses
B. net sales
C. total revenues
D. total expenses
24. Blanco, Inc. has the following income statement (in millions):
BLANCO, INC.
Income Statement
For the Year Ended December 31, 2011
Net Sales .............................. $200
Cost of Goods Sold .............................. 120
Gross Profit .............................. 80
Operating Expenses .............................. 44
Net Income .............................. $ 36
Using vertical analysis, what percentage is assigned to Net Income?

25. Dawson Company issued 500 shares of no-par common stock for $4,500. Which of the
following journal entries would be made if the stock has a stated value of $2 per share?