Suppose a Corporation Issues 5,000 Shares of $1 Par Common

question 179

Multiple Choice

Suppose a corporation issues 5,000 shares of $1 par common stock for $30 per share. In addition to the increase in cash, what effect does this transaction have on the accounting equation?

• A)Retained earnings increases $150,000.
• B)Paid-in capital in excess of par increases $145,000.
• C)Common stock increases $150,000.
• D)Gain on stock issuance increases $145,000.

---

Definitions:

Typical Healing Time

The usual duration needed for a wound or medical condition to recover and return to a state of health.

Eschar

A slough or piece of dead tissue that is cast off from the surface of the skin, particularly after a burn injury.

Pressure Ulcer

A localized injury to the skin and/or underlying tissue, usually over a bony prominence, as a result of pressure, or pressure in combination with shear.

Coccyx

The small, triangular bone at the base of the spinal column, commonly referred to as the tailbone, which can be a source of pain if injured.