At the Time That Kirby Company Issued a 2-For-1 Stock

question 25

Multiple Choice

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?

• A)The balance of the common stock account will be $30,000.
• B)The amount of paid-in capital in excess of par-common will become $150,000.
• C)The balance in the retained earnings account will become $11,000.
• D)The number of outstanding shares of common stock will be 2,500.

Estimate the cost of goods sold and understand its implications.

Understand and calculate budgeted required production and related costs.

Calculate estimated selling and administrative expenses.

Determine the estimated cost of goods sold.

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Definitions:

Mangrove Swamp

Coastal wetlands found in tropical and subtropical regions, characterized by salt-tolerant trees and bushes adapted to high salt and brackish water conditions.

Euphotic Zone

The upper layer of a body of water that receives sufficient sunlight for photosynthesis, where most aquatic life is concentrated due to the availability of light.

Phosphate

A chemical compound that is vital for plant growth and is used extensively in fertilizers.

Nitrates

Inorganic compounds made of nitrogen and oxygen, NO3−, that are often used as fertilizers but can contribute to water pollution if overused.