Ebberle Company reported the following in the shareholders

1)Ebberle Company reported the following in the shareholders’ equity section of its statement of financial position at 30 June 2016. The fully paid shares were previously issued $3.00 on application, $1.50 on allotment and an $0.60 call:

Ordinary shares $76 500

Retained earnings $25 000

Total shareholders’ equity $101 500

Which of the following is right according to the information above?

a.Earnings per share (EPS) for this company is $2.67

b.The company issued 15 000 shares

c. Earnings per share (EPS) for this company is $2.50

d.The company issued 10 000 shares

2)Brumfield issued 5 000 ordinary shares for $30 per share.

In addition to the increase in cash, what effect does this transaction have on Brumfield’s accounting equation?

a.Ordinary shares increases $5 000 and retained earnings increases $145 000

b.Ordinary shares increases $150 000

c.Ordinary shares increases $75 000 and the gain on share issuance increases $75 000

d.Ordinary shares increases $150 000 and contributed capital increases $150 000

3)Diablo Company reported the following information for 2013 and 2014:

Prepaid insurance, 31 December 2013 $14 000

Prepaid insurance, 31 December 2014 11 500

Insurance expense—2014 $25 200

How much cash was paid for insurance during 2014?

a.$36 700

b. $27 400

c. $22 700

d. $39 200