Which of the Following Journal Entries Does Not Reflect the Initial

question 53

Multiple Choice

Which of the following journal entries does not reflect the initial cash sale of shares of common stock? A. Cash
$\quad$ Common stock (no par)
B. Cash
$\quad$ Common stock (par value)
$\quad$ Capital in excess of par
C. Cash
$\quad$ Common stock (stated value)
D. Cash
$\quad$ Common stock (stated value)
$\quad$ Gain on sale of stock

• A) Option A
• B) Option B
• C)Option C
• D)Option D

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Definitions:

Unemployment Compensation

Financial payments given to individuals who have lost their jobs through no fault of their own, to support them temporarily.

Federal Level

Pertaining to the national government of a country, as opposed to state, local, or municipal levels.

Workers' Compensation

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence.

Independent Contractors

Individuals or entities that perform work for another entity under terms specified in a contract, with a significant degree of independence in the way they operate, not considered employees.