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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 shareholders 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

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