At the time that Kirby Company issued a 3-for-1 stock split, the company had 1,000 shares of $12 par value common stock outstanding. Stockholders’ equity also included $16,000 of paid in capital in excess of par value–common and $18,000 of retained earnings. Which of the following statements regarding the impact of the stock split is true?

How would the declaration of a cash dividend affect the calculation of a company’s price-earnings ratio? (Hint: Do not consider any change in the market price of the stock that might occur because of the declaration of the dividend.)

On September 1, Year 1, Orville Corporation has unappropriated retained earnings of $600,000, appropriated retained earnings of $400,000, cash of $850,000, and accounts payable of $50,000. What is the maximum amount that can be used for cash dividends?

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:

On January 1, Year 1, the Accounts Receivable balance was $32,900 and the balance in the Allowance for Doubtful Accounts was $4,100. On January 15, Year 1, an $1,210 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off?

Gross Company established a $250 petty cash fund on January 1. On March 1, the fund contained $160 in receipts for miscellaneous expenses and $85 in cash. If the company records both the disbursements and replenishments to the fund, what effect will it have on the elements of the financial statements?

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?

On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1.How will the May 1 payment of the dividend affect the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net incomeA. =4,500+(4,500) − = (4,500) FAB.(4,500)=(4,500)+ − = (4,500) FAC.(9,000)=(9,000)+ − = (9,000) IAD. = + − =

Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $42,470 and $3,290, respectively. During Year 2, the company wrote off $2,540 in uncollectible accounts. In preparation for the company’s estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule: Number of Days Past DueReceivables Amount% Likely to be UncollectibleCurrent$ 65,0001%0 to 3025,6005%31 to 606,26010%61 to 903,12025%Over 902,80050%Total$ 102,780 What amount will be reported as uncollectible accounts expense on the Year 2 income statement?

Fixit Corporation issued 26,000 shares of $10 par value common stock at its current market price of $26. How does this event affect total stockholders’ equity?