A Subscription for 4,000 Shares of $10 Par Value Common

question 72

Multiple Choice

A subscription for 4,000 shares of $10 par value common stock was accepted. Upon receipt of the balance owed on the stock subscription, a stock certificate was issued to the subscriber. The journal entry to issue the stock certificate would include a debit to

• A) Common Stock, $40,000.
• B) Common Stock, $20,000.
• C) Common Stock Subscribed, $40,000.
• D) Common Stock Subscribed, $20,000.

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Definitions:

Freight Bill

An invoice issued by a carrier detailing the charges applicable for the shipment of goods.

Total Cost

The complete sum of all costs associated with producing or acquiring goods and services, including direct, indirect, fixed, and variable costs.

Responsiveness

The ability of a system or organization to quickly and effectively react to changes.

Carrier

A company that provides transportation services for goods, typically via land, sea, or air.