Using the Following Accounts

question 72

Multiple Choice

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Sold preferred stock at a price above 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

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Definitions:

Supply

Refers to the total amount of goods or services that are available for purchase at any given price level.

Government Subsidy

Financial assistance given by the government to individuals, businesses, or institutions to support or encourage certain economic activities.

Supply

The total amount of a good or service available for purchase at any given price level, within a specified period.

Law of Demand

A fundamental economic principle stating that as the price of a product decreases, demand for it usually increases, and vice versa.