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.

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Definitions:

Action Potentials

Rapid, temporary changes in the electrical charge of a cell membrane, which are essential for nerve impulse transmissions.

Opiate Drugs

Substances derived from opium or synthetically made to mimic its effects, typically used to relieve pain but also known for their potential for addiction and abuse.

Receptor Sites

Specific locations on cell membranes or within cells where hormones, neurotransmitters, drugs, or other molecules bind to elicit a biological response.

Endorphins

“Morphine within”—natural, opiatelike neurotransmitters linked to pain control and to pleasure.