PRACTICAL ACCOUNTING 1 SHE PART 1 NAME; SCORE:___ WRITE THE LETTER OF YOUR CHOICE BEFORE EACH ITEM NUMBER. SHOW YOUR SOLUTIONS. Presented below is information related to Fehr Corporation: ‘Common Stock, P1 par 2,800,000 Peid-in Capital in Excess of Par—Common Stock 330,000 Preferred 8 112% Stock, P5O par 1,200,000 Paid-in Capital in Excess of Par—Preferred Stock 240,000 Retained Earnings 900,000 ‘Treasury Common Stock (at cost) 90,000 1. The total stockholders’ equity of Fehr Corporation is ‘a. P5,180,000. b. P5.270,000. . P5.300,000. d._P5,510,000. 2. The total paid-in capital (cash collected) related to the common stock is ‘a. P3,050,000. b. 2,930,000. © P3.170,000. d, P2,610,000. 3 Franco Company acquired 16,000 shares of its own common stock at P20 per share on February 5, 2003, and sold 8,000 of these shares at P27 per share on August 9, 2004. The market value of Franco's common slock was P24 per share al December 31, 2003, and P25 per share at December 31, 2004. The cost method Is used to record treasury stock transactions. What account(s) should Franco credit in 2004 to record tho sale of 8,000 shares? ‘a, Treasury Stock for P216,000. b, Treasury Stock for P160,000 and Paid-in Capital from Treasury Stock for P58,000. c. Treasury Stock for 160,000 and Retained Earnings for P56,000. d. Treasury Stock for 192,000 and Retained Earnings for P24,000. 4 Lynn Co. issued 150,000 shares of P10 par common stock for P'1,800,000. Lynn acquired 6,000 shares of hts own common stock at P15 per share. Three months latar Lynn soid 3,000 of these shares at P19 per share. Ifthe cost method is used to record treasury stock transactions, to record the sale of the 3,000 treesury shares, Lynn should credit ‘Treasury Stock for P57,000. Treasury Stock for P30,0 in Capital from Treasury Stock for P27,000. ¢. Treasury Stock for P45,000 and Paid-in Capital from Treasury Stock for P12,000. , Treasury Stock for P45,000 and Paid-in Capital in Excass of Par for 12,000. An analysis of stockholders’ equity of Knox Corporation es of January 1, 2004, is as follows: ‘Common stock, par value P20; authorized 200,000 shares; issued and outstanding 180,000 shares 3,600,000 Pakd-in capital in excass of par 4,800,000 Retained eamings 1.520.000 Total Paezo.o00 Knox uses the cost mathod of accounting for treasury stock and during 2004 entered into the following transaction ‘Acquired 5,000 shares ofits stock for P150,000, Sold 4,000 treasury shares at P35 per share. Sold the remaining treasury shares at P20 per share, & Assuming no other equity transactions occurred during 2004, what should Knox report at December 31, 6 total additional paid-in captal? 1,790,000 1,800,000 1,810,000 1,830,000 {Starr Corporation was organized on January 1, 2004, with an authorization of 400,000 shares of common stock with @ par value of 8 per share. During 2004, the corporation had the following capital transactions: January 5 Issued 225,000 shares @ P10 per share duly 28 purchased 30,000 shares @ P11 per share December 31 sold the 30,000 shares held in treasury @ P18 per share ‘Stract used the cost method to record the purchase and reissuance of the treasury shares. What is the {otal amount of additional paid-in capital as of December 31, 20047 a, PO. b, 590,000. , 900,000, d, P1,110,000.