Question (Please see attached document for better layout)

Question
(Please see attached document for better layout)

The following partial information is taken from the comparative balance sheet of Levi Corporation:

Shareholders’ equity

12/31/2016

12/31/2015

Common stock, $5 par value; 32 million shares authorized; 27 million shares issued and 21 million shares outstanding at 12/31/2016; and ____million shares issued and ____shares outstanding at 12/31/2015.

$135 million

$105 million

Additional paid-in capital on common stock

519 million

398 million

Retained earnings

196 million

156 million

Treasury common stock, at cost, 6 million shares at 12/31/2016 and 4 million shares at 12/31/2015

(87 million)

(33 million)

Total shareholders’ equity

$763 million

$626 million

What was the average price of the additional treasury shares purchased by Levi during 2016? (Round your answer to 2 decimal places.)

$27.00 per share.

$14.50 per share.

$8.25 per share.

None of these answer choices is correct.

Roberto Corporation was organized on January 1, 2016. The firm was authorized to issue 96,000 shares of $5 par common stock. During 2016, Roberto had the following transactions relating to shareholders’ equity:

Issued 9,400 shares of common stock at $5.50 per share.

Issued 20,900 shares of common stock at $9.00 per share.

Reported a net income of $104,000.

Paid dividends of $44,000.

Purchased 3,900 shares of treasury stock at $11.00 (part of the 20,900 shares issued at $9.00).

What is total shareholders’ equity at the end of 2016?

$300,900.

$258,000.

$256,900.

$258,700.

As of December 31, 2016, Warner Corporation reported the following:

Dividends payable

$35,000

Treasury stock

540,000

Paid-in capital – share repurchase

35,000

Other paid-in capital accounts

5,500,000

Retained earnings

$4,500,000

During 2017, half of the treasury stock was resold for $210,000; net income was $540,000; cash dividends declared were $1,350,000; and stock dividends declared were $650,000.

What was shareholders’ equity as of December 31, 2016?

$10,035,000.

$9,530,000.

$9,495,000.

$9,460,000.

As of December 31, 2016, Warner Corporation reported the following:

Dividends payable

$37,000

Treasury stock

770,000

Paid-in capital – share repurchase

37,000

Other paid-in capital accounts

5,700,000

Retained earnings

$4,700,000

During 2017, half of the treasury stock was resold for $274,000; net income was $770,000; cash dividends declared were $1,670,000; and stock dividends declared were $670,000.

What would shareholders’ equity be as of December 31, 2017?

$10,041,000.

$9,152,000.

$9,041,000.

$6,370,000.

Yellow Enterprises reported the following ($ in 000s) as of December 31, 2016. All accounts have normal balances.

Deficit (debit balance in retained earnings)

2,400

Common stock

3,500

Paid-in capital-treasury stock

2,000

Treasury stock at cost

250

Paid-in capital-excess of par

30,900

During 2017 ($ in 000s), net income was $9,900; 25% of the treasury stock was resold for $560; cash dividends declared were $800; cash dividends paid were $460.

What ($ in 000s) was shareholders’ equity as of December 31, 2017?

$43,190.

$43,410.

$43,650.

$44,410.

Top of Form

The shareholders’ equity of Green Corporation includes $298,000 of $1 par common stock and $490,000 par value of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $59,000 in 2016 after paying $29,000 cash dividends in each of 2015 and 2014. What is the amount of dividends common shareholders will receive in 2016?
$14,100.

$44,900.

$24,700.

$39,600.

Bottom of Form

Top of Form

Rick Co. had 24 million shares of $2 par common stock outstanding at January 1, 2016. In October, 2016, Rick Co.’s Board of Directors declared and distributed a 2% common stock dividend when the market value of its common stock was $65 per share. In recording this transaction, Rick would:

Credit common stock for $31.20 million.

None of these answer choices correct.

Debit retained earnings for $31.20 million.

Credit paid-in capital – excess of par for $31.20 million.

Olsson Corporation received a check from its underwriters for $75 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $75 per share.
Which is the correct entry to record the issue of the stock?

Cash

75,000,000

Common stock

75,000,000

Cash

75,000,000

Common stock

5,000,000

Paid-in capital – excess of par

70,000,000

Cash

75,000,000

Deferred stock issue revenue

27,000,000

Common stock

5,000,000

Paid-in capital – excess of par

43,000,000

Cash

75,000,000

Stock issue expense

27,000,000

Stock contract receivable

48,000,000

Boxer Company owned 25,000 shares of King Company that were purchased in 2014 for $390,000. On May 1, 2016, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 53,000 shares of Boxer stock outstanding. The market value of the King stock was $21 per share on the date of declaration and $36 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?

$111,300.

$0.

$191,000.

$112,800.

On October 1, 2016, Chief Corporation declared and issued a 11% stock dividend. Before this date, Chief had 78,000 shares of $5 par common stock outstanding. The market value of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend, Chief’s retained earnings will:
Decrease by $86,800.

Not change.

Increase by $85,800.

Decrease by $85,800.

Bottom of Form

ATTACHMENT PREVIEW Download attachment
1.The following partial information is taken from the comparative balance sheet of LeviCorporation:Shareholders’ equity12/31/201612/31/2015Common stock, $5 par value; 32 million shares authorized; 27million shares issued and 21 million shares outstandingat 12/31/2016; and ____million shares issued and ____sharesoutstanding at 12/31/2015.$135 million $105 millionAdditional paid-in capital on common stock519 million398 millionRetained earnings196 million156 millionTreasury common stock, at cost, 6 million shares at 12/31/2016and 4 million shares at 12/31/2015(87 million)(33 million)Total shareholders’ equity$763 million $626 millionWhat was the average price of the additional treasury shares purchased by Levi during 2016?(Round your answer to 2 decimal places.)$27.00 per share.$14.50 per share.$8.25 per share.None of these answer choices is correct.2.Roberto Corporation was organized on January 1, 2016. The firm was authorized to issue96,000 shares of $5 par common stock. During 2016, Roberto had the followingtransactions relating to shareholders’ equity:Issued 9,400 shares of common stock at $5.50 per share.Issued 20,900 shares of common stock at $9.00 per share.
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Reported a net income of $104,000.Paid dividends of $44,000.Purchased 3,900 shares of treasury stock at $11.00 (part of the 20,900 shares issued at $9.00).What is total shareholders’ equity at the end of 2016?$300,900.$258,000.$256,900.$258,700.3.As of December 31, 2016, Warner Corporation reported the following:Dividends payable$35,000Treasury stock540,000Paid-in capital – share repurchase35,000Other paid-in capital accounts5,500,000Retained earnings$4,500,000During 2017, half of the treasury stock was resold for $210,000; net income was $540,000; cashdividends declared were $1,350,000; and stock dividends declared were $650,000.What was shareholders’ equity as of December 31, 2016?$10,035,000.$9,530,000.$9,495,000.$9,460,000.4.As of December 31, 2016, Warner Corporation reported the following:
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