51. On January 12, 2016, Gilliam Corporation issued 550 shares of $12 par-value common stock for $15 per share. The number of shares authorized is 5,000, and the number of shares outstanding prior to this transaction is 1,200. Which of the following answers describes the effect of the January 12, 2016 transaction?
52. On February 2, 2016, the Farmer Corporation issued 9,000 shares of no-par stock for $17 per share. Within two hours of the issue, the stock's price jumped on the New York Stock Exchange to $21 per share. Which of the following answers describes the effect of the February 2, 2016 transaction?
53. When the Common Stock account is disclosed on the balance sheet, it is reported at:
A. current market value
B. average issue price
C. par or stated value
D. lower of cost or market
54. Ix Company issued 20,000 shares of $20 par value common stock at a market price of $32. As a result of this accounting event, the amount of stockholders' equity would
A. increase by $640,000.
B. be unaffected.
C. increase by $240,000.
D. increase by $400,000.
55. Where is treasury stock reported on a corporation's balance sheet?
A. As an addition to total paid-in capital
B. As a deduction from total stockholders' equity, following Retained Earnings
C. As a deduction from total paid-in capital
D. As a deduction from Retained Earnings
56. Flagler Corporation shows a total of $660,000 in its Common Stock account and $1,600,000 in its Paid-in Capital Excess account. The par value of Flagler's common stock is $8. How many shares of Flagler stock have been issued?
A. 117,500.
B. 200,000.
C. 82,500.
D. It cannot be determined
57. At the end of the accounting period, Houston Company had $12,000 of par value common stock issued, additional paid in capital of $11,000, retained earnings of $12,000, and $4,000 of treasury stock. The total amount of stockholders' equity is:
A. $37,000.
B. $39,000.
C. $19,000.
D. $31,000.
58. Which of the following statements about Treasury Stock is correct?
A. The balance in the Treasury Stock account increases paid-in capital.
B. The balance in the Treasury Stock account reduces paid-in capital.
C. The balance in the Treasury Stock account reduces total Stockholders' Equity.
D. The balance in Treasury Stock reduces Retained Earnings.
59. Kellogg, Inc. purchased 200 shares of its own $20 par value stock for $30 cash per share. Which of the following answers reflects how this purchase of treasury stock would affect Kellogg's financial statements?
60. Vailes Company reissued 200 shares of its treasury stock. The treasury stock originally cost $25 per share and was reissued for $35 per share. Select the answer that accurately reflects how the reissue of the treasury stock would affect Vailes's financial statements.