If Pratt Company Issues 5,000 Shares of $5 Par Value

question 27

Multiple Choice

If Pratt Company issues 5,000 shares of $5 par value common stock for $210,000, the account

• A)Common Stock will be credited for $185,000.
• B)Paid-in Capital in Excess of Par Value will be credited for $210,000.
• C)Paid-in Capital in Excess of Par Value will be credited for $235,000.
• D)Cash will be debited for $210,000.

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Definitions:

Tarasoff

Refers to a legal case and resulting duty that mandates mental health professionals to warn individuals of credible threats made against them by a patient.

Therapist

A professional trained to treat emotional, mental, and behavioral disorders through various psychological techniques and therapies.

Warn

To inform someone about a possible danger, problem, or other unpleasant situation, typically to prevent or minimize damage.

Involuntary Commitment

The process by which individuals are admitted to a psychiatric hospital or ward against their will due to danger to themselves or others.