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The balance in retained earnings represents the amount of capital contributed by owners in exchange for stock. True False Question 20 (4 points) A gain or loss is recognized when the company repurchases stock previously issued (known as treasury stock). True False Question 21 (4 points). Saved The following information occurred during the month of December. On December 2nd, the Petty Co, declared a $50,000 cash dividend to be distributed on December 21st. Shareholders owning the stock on December 10th are entitled to receive the dividend. December 2nd would be known as the: Date of payment Date of record The Peace Co. sold 10,000 shares of $1 par value common stock for $30 a share. As a result, total contributed capital would increase by: $300,000 $0. $10,000 $290,000 25 (4 points) The Vedder Co. declared a 2 for 1 stock split on its common stock. Immediately before the split, the Vedder Co. reported the following: Market value per share $100.00 per share Par value per share $10.00 per share Number of shares Issued 50,000 shares Number of shares outstanding 50,000 shares Immediately after the 2 for 1 stock split, which of the following statements would be true? There would be 2,000,000 shares of stock outstanding immediately after the 2 for 1 stock split Par value would be $5.00 per share immediately after the 2 for 1 stock split. Market Value would be $200.00 per share immediately after the 2 for 1 stock Split. Total market value would increase to $200,000,000

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