1. The Shippecasse Company had a Current Ratio of 1:2. The Company declared a $10,000 cash dividend to preferred shareholders and immediately paid 70% of it. What is the combined effect of these two transactions on the current ratio and total stockholders' equity, respectively?

Select one: a. Increase, Increase b. Decrease, Decrease c. Increase, Decrease d. No Effect, Increase e. Decrease, No Effect

2. On March 1, 2018, a firm issued $200,000 of 9% bonds. The bonds were dated January 1, 2018. Interest is paid annually on 12/31. A total of $210,500 in cash was received, which included accrued interest. What amount of premium or discount is associated with these bonds?

Select one:

a. $10,500 premium

b. $7,500 premium

c. $2,000 premium

d. $3,000 discount

e. $13,500 premium

3. Which statement is false for both a property dividend and a stock split?

Select one:

a. Retained Earnings decreases

b. Par value per share decreases

c. Contributed capital increases

d. Total stockholders' equity does not change

e. Total assets decrease