If Keene Company Issues 9,000 Shares of $5 Par Value

question 41

Multiple Choice

If Keene Company issues 9,000 shares of $5 par value common stock for $160,000, the account

• A) Common Stock will be credited for $45,000.
• B) Paid-in Capital in Excess of Par will be credited for $45,000.
• C) Paid-in Capital in Excess of Par will be credited for $160,000.
• D) Cash will be debited for $115,000.

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Definitions:

Reload Features

Options or clauses in certain agreements that allow for the automatic renewal or extension under specific conditions.

Initial Options

The first set of choices or decisions available in a particular situation or as part of a negotiated agreement.

Fair Value

The gain from liquidating an asset or the outgo for transferring a liability in a well-planned trade with market stakeholders on the designated measurement day.

Share Options

A privilege, sold or granted, that gives the holder the right, but not the obligation, to buy or sell shares at a specified price within a predetermined time.