1. Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 88,000 shares of $5 par common stock. During 2018, Roberto had the following transactions relating to shareholders' equity:

Issued 9,900 shares of common stock at $5.30 per share.
Issued 20,300 shares of common stock at $9.10 per share.
Reported a net income of $104,000.
Paid dividends of $43,000.
Purchased 2,500 shares of treasury stock at $11.10 (part of the 20,300 shares issued at $9.10).

What is total shareholders' equity at the end of 2018?

MULTIPLE CHOICE

a. $313,450

b. $272,050

c. $270,450

d. $285,700

2. Accumulated other comprehensive income is reported:

MULTIPLE CHOICE

a. in the balance sheet as an asset.

b. in the balance sheet as a liability

c. in the balance sheet as a component of shareholders equity

d. in the statement of comprehensive income

4. Paid-in capital in excess of par is reported:

MULTIPLE CHOICE

a. as a reduction of shareholder’s equity

b. as a concurrent asset

c. as a concurrent liability

d. as an increase in shareholders equity

11. What is the effect of a stock split (not effected in the form of a stock dividend) on each of the following?

	Retained earnings	Total Paid-in capital
a.	no effect	increase
b.	no effect	no effect
c.	increase	decrease
d.	decrease	increase

MULTIPLE CHOICE

option A

option B

option C

option D

12. he corporate charter of Alpaca Co. authorized the issuance of 10 million, $1 par common shares. During 2018, its first year of operations, Alpaca had the following transactions:

January		1		sold 8 million shares at $15 per share
June		3		retired 2 million shares at $18 per share
December		28		sold 2 million shares at $20 per share

What amount should Alpaca report as additional paid-in capital‒ excess of par, in its December 31, 2018, balance sheet?

MULTIPLE CHOICE

a. $122 million

b. $116 million

c. $112 million

d. $74 million

Answer rating: 100% (QA)

1 Paid in capital Net income Less Dividends Less Treasury stock Total shareholders equit... View the full answer