Please Refer to the Following Information for Peartree Company

question 16

Multiple Choice

Please refer to the following information for Peartree Company:
• Common stock, $1.00 par, 100,000 issued, 95,000 outstanding
• Paid-in capital in excess of par: $2,150,000
• Retained earnings: $910,000
• Treasury stock: 5,000 shares purchased at $20 per share
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If Peartree resold 800 shares of treasury stock for $15 per share, what amounts would be shown for the number of shares issued and outstanding?

• A) 100,800 issued; 95,000 outstanding
• B) 100,000 issued; 95,800 outstanding
• C) 100,000 issued; 94,200 outstanding
• D) 100,000 issued; 5,800 outstanding

Recognize the principles and benefits of continuous improvement strategies in organizations.

Understand the concept of internal and external customers and their significance in business operations.

Comprehend the role and methodologies of customer relationship management (CRM) in enhancing business performance.

Grasp the concept of Total Quality Management (TQM) and its impact on organizational excellence.

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Definitions:

Equipment Account

An account on the balance sheet where the cost of purchasing equipment is recorded and progressively depreciated over time.

Specific Identification

An inventory costing method that tracks the actual cost of each individual item in inventory and assigns this cost to the goods sold.

FIFO Assumption

The First-In, First-Out method is an accounting assumption used to manage inventory and cost of goods sold, assuming the first items placed into inventory are sold first.

Subsidiary Shares

Shares owned by a parent company in a subsidiary, representing a controlling interest in that subsidiary.