The Bean Counter Corporation Received Subscriptions for 100 Shares of Its

question 78

Multiple Choice

The Bean Counter Corporation received subscriptions for 100 shares of its $12 par value common stock at $15 per share.The entry to record receipt of the subscriptions would include a:

• A)debit to Cash $1,500 and a credit to Common Stock $1,500.
• B)debit to Cash $1,500;a credit to Common Stock $1,200;and a credit to Paid-in Capital in Excess of Par Value-Common $300.
• C)debit to Common Stock Subscribed $1,500 and a credit to Subscriptions Receivable-Common Stock $1,500.
• D)debit to Subscriptions Receivable-Common Stock $1,500;a credit to Common Stock Subscribed $1,200;and a credit to Paid-in Capital in Excess of Par Value-Common for $300.

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Definitions:

Valid Tender

An offer of payment meeting the legal requirements to extinguish a debt or obligation.

Madison Square Garden Corp., Ill. v. Carnera

A legal case that dealt with specific issues related to contracts or legal obligations; further context would be needed for a precise definition.

Negative Covenant

A promise in a contract that prohibits a party from engaging in certain activities.

Exclusive Services

refers to specialized services provided or contracted to serve only one party or a limited market, often under specific terms that exclude competitors.