A Company Sells 1 Million Shares of Common Stock with a Par

question 95

Multiple Choice

A company sells 1 million shares of common stock with a par value of $0.02 for $15 a share.To record the transaction,the company would:

• A)debit Cash for $20,000 and credit Common Stock for $20,000.
• B)debit Cash for $15 million and credit Common Stock for $15 million.
• C)debit Cash for $15 million,credit Common Stock for $20,000 and credit Additional Paid-in Capital for $14,980,000.
• D)debit Cash for $20,000,debit Capital Receivable for $14,980,000,credit Common Stock for $20,000 and credit Additional Paid-in Capital for $14,980,000.

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Definitions:

Hippocampus

A crucial component of the brain located in the temporal lobe, playing a significant role in memory formation and spatial navigation.

Short-Term Memories

Memories that are temporarily held and processed for a brief duration, typically regarded as lasting for seconds to minutes.

Old Memories

Refers to recollections from the distant past, often held for many years, and can include both personal experiences and learned information.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine, often associated with alcoholism.