ABC Sells 400 Shares of Its $20 Par Common Stock

question 47

Multiple Choice

ABC sells 400 shares of its $20 par common stock for $25.The entry would entail a credit(s) of:

• A)Cash of $10,000.
• B)Paid-in Capital in Excess of Par Value-Common for $8,000;Common Stock for $2,000.
• C)Paid-in Capital in Excess of Par Value-Common for $2,000;Common Stock for $8,000.
• D)Common Stock for $10,000.

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Definitions:

Control

The power to influence or direct people's behavior or the course of events.

Disenfranchised

Refers to individuals or groups who are deprived of the right to vote or other rights normally available to members of a society.

Poll Taxes

Fees levied as a precondition for voting, historically used in the United States to disenfranchise African American and poor white voters.

Explicitly Reserve

To clearly and specifically set something aside for a particular purpose or person, often used in legal or formal contexts.