A Company Sells 1 Million Shares of Common Stock with a Par

question 95

Multiple Choice

A company sells 1 million shares of common stock with a par value of $0.02 for $15 a share.To record the transaction,the company would:

• A)debit Cash for $20,000 and credit Common Stock for $20,000.
• B)debit Cash for $15 million and credit Common Stock for $15 million.
• C)debit Cash for $15 million,credit Common Stock for $20,000 and credit Additional Paid-in Capital for $14,980,000.
• D)debit Cash for $20,000,debit Capital Receivable for $14,980,000,credit Common Stock for $20,000 and credit Additional Paid-in Capital for $14,980,000.

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Definitions:

Legitimised

Made acceptable, lawful, or officially approved, often in a social, legal, or moral context.

Enshrined

Describes something that is preserved or cherished as if sacred, often in reference to principles, rights, or values embedded within legal or moral codes.

Prejudices

Preconceived opinions that are not based on reason or actual experience, often leading to biased attitudes towards individuals or groups.

Three-Component Attribute Model

A framework proposing that attitudes comprise cognitive, affective, and behavioral components, each contributing to the evaluation of an object or idea.