Portland Sound Cafe Began Business on January 1, 2015

question 47

Multiple Choice

Portland Sound Cafe began business on January 1, 2015.The corporate charter authorized issuance of 1,000 shares of no-par value common stock, of which 200 shares were issued, and 4,000 shares of $8 par value, 6% cumulative preferred stock, of which none were issued.Portland Sound sold 400 shares of common stock at $8 per share on May 1.The entry to record the issuance of the shares on May 1 will:

• A)Increase Cash, $1,000; Increase Additional Paid­in Capital-Common, $320; Increase Common Stock, $680
• B)Increase Cash, $3,200; Increase Additional Paid­in Capital-Common, $2,800; Increase Common Stock, $400
• C)Increase Cash, $4,800; Increase Common Stock, $4,800
• D)Increase Cash, $3,200; Increase Common Stock, $3,200

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Definitions:

Same Density

A condition where two substances have an equal mass-to-volume ratio.

Fault

A fracture along which the adjacent rock surfaces are displaced parallel to the fracture.

Rock Layers

Horizontal strata of rocks, each layer typically representing a period of deposition in Earth's geological history.

Evolutionary Diagram

A block diagram, cross section, or map that shows the history of an area as a series of steps, proceeding from the earliest stages to the most recent one.