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At the time that Kirby Company issued a 2-for-1 stock split, the company had 5,000 shares of $6 par value common stock outstanding. Stockholders’ equity also included $15,000 of paid in capital in excess of par value–common and $22,000 of retained earnings. Which of the following statements regarding the impact of the stock split is true?

Rocco Corporation decides to issue a 7.5% stock dividend on 20,000 outstanding shares of $10 stated value common stock. The distribution is made at the time the market value of the stock is $50 a share. How will the entry to record this transaction affect the company’s stockholders’ equity accounts? Common StockPaid-in Capital in Excess of Par Value–CommonRetained EarningsA.$ 200,000$ 300,000$(50,000)B.$ 15,000 $(15,000)C.$ 15,000$ 60,000$(75,000)D.$ 100,000 $(100,000)

At the time of liquidation, Fairchild Company reported assets of $200,000, liabilities of $120,000, common stock of $70,000 and retained earnings of $10,000. What is the maximum amount of Fairchild’s assets that the shareholders are entitled to receive?

What effect will the declaration and distribution of a stock dividend have on net income and cash flows? Net IncomeCash FlowsA.NoneNoneB.NoneDecreaseC.IncreaseNoneD.DecreaseDecrease

Flagler Corporation shows a total of $700,000 in its Common Stock account and $700,000 in its Paid-in Capital Excess account. The par value of Flagler’s common stock is $7. How many shares of Flagler stock have been issued?

Emerald Company was established in January, Year 1. During Year 1 the company experienced the following events.Collected $125,000 cash from the issue of common stockBorrowed $60,000 cash from the state bankEarned $135,000 of cash revenuePaid $277,500 cash expensesThe company was liquidated at the end of Year 1. Based on this information:

How will an impairment loss of $15,000 relating to goodwill affect the financial statements?

Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000 shares of $6.00 par value common stock. As of December 31, Year 3, Gilligan’s stockholders’ equity accounts report the following balances: Common stock, $6 par, 500,000 shares authorized, 55,000 shares issued and outstanding$ 330,000 Paid-in capital in excess of par – Common440,000 $ 770,000Retained earnings 1,400,000Total stockholders’ equity $ 2,170,000 At the end of Year 3, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $22 per share.What is the amount of retained earnings that will be transferred to paid-in capital as a result of the stock dividend issued by Gilligan Corporation?

How is treasury stock reported on a corporation’s balance sheet?

The Miller Company earned $107,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, Miller collected $74,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.What is the amount of uncollectible accounts expense that will be recognized on the Year 1 income statement?