A Corporation Issued 5,000 Shares of Its No Par Common

question 129

Multiple Choice

A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share.The issue price was $10 per share.The entry to record this transaction would be:

• A)Debit Cash $50,000; credit Paid-in Capital in Excess of Stated Value,Common Stock $45,000; credit Common Stock $5,000.
• B)Debit Cash $50,000; credit Common Stock $50,000.
• C)Debit Common Stock $50,000; credit Cash $50,000.
• D)Debit Treasury Stock $50,000; credit Cash $50,000.
• E)Debit Common Stock $25,000; debit Paid-in Capital in Excess of Par Value,Common Stock $5,000; credit Common Stock $45,000.

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Definitions:

Right And Wrong

Fundamental ethical principles that dictate the morality of actions, decisions, and behaviors.

Preconventional

A stage in Kohlberg's theory of moral development where behavior is influenced by rewards and punishments.

Conventional

Following traditional forms or methods; typical and based on accepted standards.

Postconventional

A stage of moral development in which individuals make decisions based on universal principles and the internalization of these principles as personal ethics.