Caesar Cruise Lines, Inc B) C) D)

question 84

Multiple Choice

Caesar Cruise Lines, Inc. issues 7,000 shares of common stock with a $2 par value. The issue price of the stock is $28 per share, and the company paid an underwriter $500 in stock issue costs. What is the journal entry required to record the issuance of the shares?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 196,000 & \\
• \hline \text { Common Stock } - \$ 2 \text { par } & & 14,000 \\
• \hline \text { Addl. Paid-in Capital in Excess of Par-Common } & & 182,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 195,500 & \\
• \hline \text { Common Stock } - \$ 2 \text { par } & & 13,500 \\
• \hline \text { Addl. Paid-in Capital in Excess of Par-Common } & & 182,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 195,500 & \\
• \hline \text { Common Stock } - \$ 2 \text { par } & & 2,800 \\
• \hline \text { Addl. Paid-in Capital in Excess of Par-Common } & & 192,700 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 195,500 & \\
• \hline \text { Common Stock } - \$ 2 \text { par } & & 14,000 \\
• \hline \text { Addl. Paid-in Capital in Excess of Par-Common } & & 181,500 \\
• \hline
• \end{array}\]

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