ACG3113 TEST WITH COMPLETE SOLUTION

ACG3113 TEST WITH
COMPLETE SOLUTION
Common Stock is classified as - Answer PIC - capital stock

Retained Earnings is classified as - Answer R/E

PIC excess of par - CS is classified as - Answer PIC - APIC

Treasury Stock is classified as - Answer Deducted from total PIC and R/E

PIC from treasury stock is classified as - Answer PIC - APIC

PIC in excess of stated value - CS is classified as - Answer PIC - APIC

Preferred Stock is classified as - Answer PIC - capital stock

Purchased 5000 treasury shares at $45 per share

I,D, or NE - Answer A: D

L: NE

SE: D

Paid-in capital: NE

RE: NE

NI: NE

Resold 2000 of the treasury shares at $49 per share

I,D, or NE - Answer A: I

L: NE

SE: I

Paid-in capital: I

RE: NE

NI: NE

Resold 500 of the treasury shares at $40 per share

I,D, or NE - Answer A: I

L: NE

, SE: I

Paid-in capital: D

RE: NE

NI: NE

Recorded accrued interest earned on a note receivable

I,D, or NE - Answer A: I

L: NE

SE: I

Paid-in capital: NE

RE: I

NI: I

Declared a cash dividend

I,D, or NE - Answer A: NE

L: I

SE: D

Paid-in capital: NE

RE: D

NI: NE

Declared and distributed a stock split

I,D, or NE - Answer A: NE

L: NE

SE: NE

Paid-in capital: NE

RE: NE

NI: NE

Approved a retained earnings restriction

I,D, or NE - Answer A: NE