New Corp Issues 2,000 Shares of $10 Par Value Common Stock

question 29

Multiple Choice

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

• A) Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $12,000.
• B) Common Stock $32,000.
• C) Common Stock $20,000 and Paid-in Capital in Excess of Par $12,000.
• D) Common Stock $20,000 and Retained Earnings $12,000.

---

Definitions:

Primary Control

An effort to modify reality by changing other people, the situation, or events; a “fighting back” philosophy.

Tolerate

Allowing or enduring something, typically something that one does not necessarily like or agree with.

Pessimistic Explanatory Styles

A cognitive approach where individuals habitually interpret situations in a negative light, expecting unfavorable outcomes.

Realistic Optimists

Individuals who maintain a positive outlook while still being grounded in the realities of a situation.