New Corp Issues 2,000 Ordinary Shares with a $10 Par Value

question 150

Multiple Choice

New Corp. issues 2,000 ordinary shares with a $10 par value at $16 per share. When the transaction is recorded, credits are made to

• A) Share Capital-Ordinary $12,000 and Share Premium-Ordinary $20,000.
• B) Share Capital-Ordinary $32,000.
• C) Share Capital-Ordinary $20,000 and Share Premium-Ordinary $12,000.
• D) Share Capital-Ordinary $20,000 and Retained Earnings $12,000.

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Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, essential for maintaining the flow of blood through the body.

Filtration

A process that separates solid particles from liquids or gases using a filter medium that permits the fluid to pass but not the solid particles.

Nitrogenous Waste

Waste products that contain nitrogen, primarily produced by the metabolic breakdown of proteins and nucleic acids, and excreted by organisms.

Urea

Main nitrogenous waste of terrestrial amphibians and most mammals.