Using the Following Accounts

question 110

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 less than 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:

Moles

A measure of quantity in chemistry that represents 6.022 x 10^23 particles of a substance.

Helium

Helium is an inert gas with the atomic number 2, notable for its low density, lack of color, odor, or taste, and for being the second lightest and second most abundant element in the observable universe.

KCl

Potassium chloride, a metal halide salt composed of potassium and chlorine, used in medicine, food processing, and scientific applications.

Moles

A chemical unit of measure that denotes an amount of substance containing approximately 6.022 x 10^23 particles.