The Entry to Record the Issuance of 2,000 Shares of $10

question 29

Multiple Choice

The entry to record the issuance of 2,000 shares of $10 par-value common stock for $14 a share consists of a debit to Cash for $28,000 and a credit to Common Stock for

• A) $28,000.
• B) $20,000 and a credit to Gain on Sale of Common Stock for $8,000.
• C) $20,000 and a credit to Treasury Stock for $8,000.
• D) $20,000 and a credit to Paid-in Capital in Excess of Par Value-Common Stock for $8,000.

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Definitions:

Defence Mechanism

Psychological strategies brought into play by individuals to protect themselves from unacceptable thoughts or feelings.

Critical

Having a crucial or decisive importance in the success, failure, or existence of something.

Loving

An intense feeling of deep affection, care, and attachment towards someone or something, often characterized by emotional warmth and a desire for close bonds.

Reaction Formation

A defense mechanism in which an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.