1.Prior to the write-off of a $5,000 customer account deemed uncollectable, a company had the following account balances:

Accounts receivabledr.

$695,000

Allowance for doubtful accountscr.

14,500

The net realizable value of accounts receivable before and after the write-off is:

Before a. $695,000 b. $680,500 c.$695,000 d. $680,500

After A. $695,000 B.$680,500 C. $690,000 D. $675,500

e.None of the above

E

B

C

D

A

2. Which of the following correctly describes the effect of declaring a 2:1 (2 to 1) stock split?

A. The number of shares outstanding increases while the par value of each share decreases

B. Total stockholders' equity decreases.

C. None of these answers are correct

D. The number of shares outstanding decreases while the par value of each share increases.

E. Total stockholders' equity increases.

3. If a company provides the following information regarding stockholder's equity on their balance sheet, how much ($) was received per share for common stock?

Common Stock, $4 par$1,000,000

Additional paid-in-capital, common stock $3,000,000

Retained Earnings$5,500,000

E. None of these answers are correct

A. $16

B. $5.33

C. $4

D. $250,000

4. Which of the following is true if a company reissues 10,000 shares of treasury stock for $36 per share when they were repurchased at a cost of $30 per share and have a $1 par value?

A. Total stockholder's equity does not increase or decrease

B. Additional paid-in capital increases by $60,000

C. None of these answers are correct

D. Gain of $60,000 is recorded in the income statement

E. Additional paid-in capital decreases by $60,000