The Entry to Record the Issuance of 1,000 Shares of $10

question 17

Multiple Choice

The entry to record the issuance of 1,000 shares of $10 par-value common stock for $14 a share consists of a debit to Cash for $14,000 and a credit to Common Stock for

• A) $14,000.
• B) $10,000 and a credit to Gain on Sale of Common Stock for $4,000.
• C) $10,000 and a credit to Paid-in Capital in Excess of Par Value-Common Stock for $4,000.
• D) $10,000 and a credit to Treasury Stock for $4,000.

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Definitions:

Title Passes

The point at which ownership of property is transferred from one party to another, typically upon the fulfillment of specified conditions.

Seller Completes Performance

The point at which a seller has fulfilled their contractual obligations in a transaction, typically resulting in the transfer of goods or services to the buyer.

Security Interests

Legal claims on assets that are used as collateral to secure loans or other obligations.

Personal Property

Movable property that is not fixed to one location and can be tangible, like cars and furniture, or intangible, such as stocks and bonds.