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:

Market Price

The current price at which goods or services are bought and sold in a competitive marketplace.

Price Floor

A floor price established by the government or regulatory authority, representing the lowest legal selling price for a specific product or service.

Market Efficiency

The degree to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns.

Surplus

A situation where the quantity of a product or service supplied exceeds the quantity demanded at the current price.