MULTIPLE CHOICE—Computational

Use the following information for questions 71 and 72.

Presented below is information related to Hale Corporation:
Common Stock, $1 par $4,800,000
Paid-in Capital in Excess of Par—Common Stock 550,000
Preferred 8 1/2% Stock, $50 par 2,000,000
Paid-in Capital in Excess of Par—Preferred Stock 400,000
Retained Earnings 1,500,000
Treasury Common Stock (at cost) 150,000

71. The total stockholders' equity of Hale Corporation is

a. $9,100,000.
b. $9,250,000.
c. $7,600,000.
d. $7,750,000.

72. The total paid-in capital (cash collected) related to the common stock is
a. $4,800,000.
b. $5,350,000.
c. $5,750,000.
d. $5,200,000.

73. Manning Company issued 10,000 shares of its $5 par value common stock having a fair
value of $25 per share and 15,000 shares of its $15 par value preferred stock having a
fair value of $20 per share for a lump sum of $520,000. How much of the proceeds
would be allocated to the common stock?
a. $54,167
b. $236,364
c. $270,833
d. $276,250

74. Norton Company issues 4,000 shares of its $5 par value common stock having a fair
value of $25 per share and 6,000 shares of its $15 par value preferred stock having a
fair value of $20 per share for a lump sum of $204,000. What amount of the proceeds
should be allocated to the preferred stock?
a. $182,750
b. $127,500
c. $111,273
d. $95,625

75. Berry Corporation has 50,000 shares of $10 par common stock authorized. The
following transactions took place during 2012, the first year of the corporation’s
existence:
Sold 10,000 shares of common stock for $18 per share.
Issued 10,000 shares of common stock in exchange for a patent valued at
$200,000.
At the end of the Berry’s first year, total paid-in capital amounted to
a. $80,000.
 b. $180,000.
c. $200,000.
d. $380,000.
76. Glavine Company issues 6,000 shares of its $5 par value common stock having a fair
value of $25 per share and 9,000 shares of its $15 par value preferred stock having a
fair value of $20 per share for a lump sum of $312,000. The proceeds allocated to the
common stock is
a. $32,500
b. $141,818
c. $162,500
d. $170,182

77. Wheeler Company issued 5,000 shares of its $5 par value common stock having a fair
value of $25 per share and 7,500 shares of its $15 par value preferred stock having a
fair value of $20 per share for a lump sum of $260,000. The proceeds allocated to the
preferred stock is
a. $232,917
b. $162,500
c. $141,818
d. $118,182

78. Pember Corporation started business in 2007 by issuing 200,000 shares of $20 par
common stock for $36 each. In 2012, 30,000 of these shares were purchased for $52
per share by Pember Corporation and held as treasury stock. On June 15, 2013, these
30,000 shares were exchanged for a piece of property that had an assessed value of
$810,000. Perber’s stock is actively traded and had a market price of $60 on June 15,
2013. The cost method is used to account for treasury stock. The amount of paid-in
capital from treasury stock transactions resulting from the above events would be
a. $1,200,000.
b. $720,000.
c. $585,000.
d. $240,000.

79. On September 1, 2012, Valdez Company reacquired 16,000 shares of its $10 par value
common stock for $15 per share. Valdez uses the cost method to account for treasury
stock. The journal entry to record the reacquisition of the stock should debit
a. Treasury Stock for $160,000.
b. Common Stock for $160,000.
c. Common Stock for $160,000 and Paid-in Capital in Excess of Par for $60,000.
d. Treasury Stock for $240,000.

80. Gannon Company acquired 8,000 shares of its own common stock at $20 per share on
February 5, 2012, and sold 4,000 of these shares at $27 per share on August 9, 2013.
The fair value of Gannon's common stock was $24 per share at December 31, 2012,
and $25 per share at December 31, 2013. The cost method is used to record treasury
stock transactions. What account(s) should Gannon credit in 2013 to record the sale of
4,000 shares?
a. Treasury Stock for $108,000.
b. Treasury Stock for $80,000 and Paid-in Capital from Treasury Stock for $28,000.
c. Treasury Stock for $80,000 and Retained Earnings for $28,000.
d. Treasury Stock for $96,000 and Retained Earnings for $12,000.
81. Long Co. issued 100,000 shares of $10 par common stock for $1,200,000. Long
acquired 10,000 shares of its own common stock at $15 per share. Three months later
Long sold 5,000 of these shares at $19 per share. If the cost method is used to record
treasury stock transactions, to record the sale of the 5,000 treasury shares, Long should
credit
a. Treasury Stock for $95,000.
b. Treasury Stock for $50,000 and Paid-in Capital from Treasury Stock for $45,000.
c. Treasury Stock for $75,000 and Paid-in Capital from Treasury Stock for $20,000.
d. Treasury Stock for $75,000 and Paid-in Capital in Excess of Par for $20,000.

82. An analysis of stockholders' equity of Hahn Corporation as of January 1, 2012, is as

follows:
Common stock, par value $20; authorized 100,000 shares;
issued and outstanding 90,000 shares $1,800,000
Paid-in capital in excess of par 700,000
Retained earnings 760,000
Total $3,260,000
Hahn uses the cost method of accounting for treasury stock and during 2012 entered
into the following transactions:
Acquired 2,500 shares of its stock for $75,000.
Sold 2,000 treasury shares at $35 per share.
Sold the remaining treasury shares at $20 per share.
Assuming no other equity transactions occurred during 2012, what should Hahn report at
December 31, 2012, as total additional paid-in capital?
a. $695,000
b. $700,000
c. $705,000
d. $715,000