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:

Compensated Emancipation

A policy of freeing enslaved people whereby former slave owners were compensated financially for the loss of their slaves.

Rebellious Territories

Regions or areas that resist or defy central authority or governance, often leading to conflict.

Preliminary Emancipation Proclamation

An executive order issued by President Abraham Lincoln in 1862, announcing the future emancipation of all slaves in any state of the Confederate States of America that did not return to Union control.

Abolitionists

Individuals and groups who advocated for the immediate end of slavery before and during the 19th century in the United States.