Uncle Fred\'s Pizza Co. charter provides for the issuance of 200,000 shares of c
ID: 2490618 • Letter: U
Question
Uncle Fred's Pizza Co. charter provides for the issuance of 200,000 shares of common stock at $25 par. If 75,000 shares were originally issued and 6,700 shares were re-acquired as Treasury Stock, how many shares of common stock are currently outstanding?
6,700
68,300
81,700
125,000
The accounting equation is
assets - liabilities = owners' equity.
no longer viable.
owners' equity - retained earnings = liabilities.
depreciation - liabilities = owners' equity.
On March 20, Atta Boy Dog Food Co. acquired land in exchange for 15,000 shares of $20 par common stock with a current market price of $57 per share. What are the entries to record this transaction?
Debit: Common Stock $300,000, Credit: Land $300,000
Debit: Common Stock $300,000 and Paid-in Capital in Excess of Par- Common Stock $555,000, Credit: Land $855,000
Debit: Land $300,000 and Credit: Common Stock $300,000
Debit: Land $855,000, Credit: Common Stock $300,000 and Paid-In Capital in Excess of Common Stock $555,000
Which of the following statements is not a reason for a company to purchase another company's stock?
developing or maintaining business relationships.
gaining control of another company's operations.
sustain the other company's stock price.
earning a return on excess cash.
Huff and Puff Co. owns 81% of the outstanding stock of Wolff Enterprises. Wolff Enterprises is referred to as the
subsidiary company.
parent company.
affiliate partner.
minority interest.
6,700
68,300
81,700
125,000
The accounting equation is
assets - liabilities = owners' equity.
no longer viable.
owners' equity - retained earnings = liabilities.
depreciation - liabilities = owners' equity.
On March 20, Atta Boy Dog Food Co. acquired land in exchange for 15,000 shares of $20 par common stock with a current market price of $57 per share. What are the entries to record this transaction?
Debit: Common Stock $300,000, Credit: Land $300,000
Debit: Common Stock $300,000 and Paid-in Capital in Excess of Par- Common Stock $555,000, Credit: Land $855,000
Debit: Land $300,000 and Credit: Common Stock $300,000
Debit: Land $855,000, Credit: Common Stock $300,000 and Paid-In Capital in Excess of Common Stock $555,000
Which of the following statements is not a reason for a company to purchase another company's stock?
developing or maintaining business relationships.
gaining control of another company's operations.
sustain the other company's stock price.
earning a return on excess cash.
Huff and Puff Co. owns 81% of the outstanding stock of Wolff Enterprises. Wolff Enterprises is referred to as the
subsidiary company.
parent company.
affiliate partner.
minority interest.
Explanation / Answer
1. B 68300 , 200000 is authorised shares and 75000 issued less treasury 6700 = 68300 shares
2 .assets - liabilities = owners' equity.
3
Debit: Land $855,000, Credit: Common Stock $300,000 and Paid-In Capital in Excess of Common Stock $555,000
4 sustain the other company's stock price.
5. A. Subsidiary company
if any company owns more than 50% share capital of another then holding subsidiary relationship exits.
Debit: Land $855,000, Credit: Common Stock $300,000 and Paid-In Capital in Excess of Common Stock $555,000
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