Alt Corpissues 5,000 Shares of $10 Par Value Common Stock at at $14

question 199

Multiple Choice

Alt Corp.issues 5,000 shares of $10 par value common stock at $14 per share.When the transaction is recorded, credits are made to:

• A)Common Stock $50,000 and Paid-in Capital in Excess of Stated Value $20,000.
• B)Common Stock $70,000.
• C)Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.
• D)Common Stock $50,000 and Retained Earnings $20,000.

---

Definitions:

Coercive Power

The ability of a person to influence others through the threat of punishment or the imposition of unpleasant consequences.

Legitimate Power

A form of authority where power is given to an individual due to their position and responsibilities within an organization.

Cognitive Ability

The capacity of an individual to perform various mental activities related to learning, problem-solving, and decision-making.

Creative Thinking

The ability to generate new and original ideas or solutions to problems.