The Following Two Items Are Disclosed in the Stockholders' Equity

question 140

Multiple Choice

The following two items are disclosed in the stockholders' equity section of Riverside Corporation's December 31, 2009, balance sheet: If the company had reacquired 700 shares of treasury stock in February of 2009, then for what amount was the other treasury stock sold for during 2009?

• A) $2 per share above its par value.
• B) $2 per share.
• C) $2 per share above its cost.
• D) $22 per share above its cost.

---

Definitions:

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Net Realizable Value

The estimated selling price of inventory in the ordinary course of business minus any costs for completion, disposal, and transportation.

Bad Debt Expense

A financial accounting concept representing the amount of revenue considered uncollectible from customers or clients.

Percent Of Sales Method

A financial forecasting model that estimates future financial statements based on assumed sales growth and historical financial ratios.