Using the Following Accounts

question 10

Multiple Choice

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Sold common stock at a price equal to the par value.
Debit ________ Credit ________

• A)Subscription receivable-common stock
• B)Cash
• C)Machinery
• D)Building
• E)Land
• F)Organization costs
• G)Preferred stock
• H)Common stock
• I)Paid in capital in excess of par value - common
• J)Paid in capital in excess of par value - preferred
• K)Common stock subscribed
• L)Discount on common stock
• M)Organization Expense

Comprehend the design and impact of gain-sharing plans like the Scanlon plan on labor costs and productivity.

Identify best practices and considerations in designing nonmonetary and monetary reward systems.

Understand how stock options and share purchase plans work as part of employee compensation.

Distinguish between different types of gain-sharing plans and their operational basis.

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Definitions:

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate governance.

Accounting Implications

The effects or outcomes that accounting practices and principles have on financial statements and business decisions.

Business Combination

A transaction or event in which two or more businesses come together to form one company.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair value of identifiable net assets of a business acquired.