S & C Company Issues 1,800 Shares of Common Stock $$\begin{array} { l l } \text { Cash } & 3,600 \\\quad \text { Common Stock } && 3,600\end{array}$$

question 95

Multiple Choice

S & C Company issues 1,800 shares of common stock with a $2 par value. The issue price of the stock is $15 per share. What is the journal entry required to record the issuance of the shares?

• A) \[\begin{array} { l l }
• \text { Cash } & 3,600 \\
• \quad \text { Common Stock } && 3,600
• \end{array}\]
• B) \[\begin{array} { l r }
• \text { Cash } & 27,000 \\
• \quad \text { Common Stock - } \$ 2 \text { par } && 3,600 \\
• \text { Addl. Paid-in Capital in Excess of Par-Common } && 23,400
• \end{array}\]
• C) \[\begin{array} { l r }
• \text { Cash } & 27,000 \\
• \quad \text { Common Stock - } \$ 2 \text { par } && 1,800 \\
• \text { Addl. Paid-in Capital in Excess of Par-Common } && 25,200
• \end{array}\]
• D) \[\begin{array} { l l }
• \text { Cash } &27,000 \\
• \quad \text { Common Stock } && 27,000
• \end{array}\]

Comprehend the implications of using short-term over long-term financing, including interest rate risks.

Grasp the impact of cash management practices on the Cash Conversion Cycle (CCC).

Recognize the consequences of not adhering to offered trade credit discounts.

Understand the factors influencing the choice of short-term vs long-term financing.