Examlex

Solved

Olsson Corporation Received a Check from Its Underwriters for $72

question 112

Multiple Choice

Olsson Corporation received a check from its underwriters for $72 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $72 per share. Which is the correct entry to record the issue of the stock?


Definitions:

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from being personally liable for the company's debts or obligations.

Real Estate Agent

A licensed professional who represents buyers or sellers in real estate transactions.

Articles of Incorporation

The primary legal document used to establish a corporation, outlining basic information such as the corporation's name, purpose, and structure.

Letters Patent

A method of incorporating used in some jurisdictions in Canada whereby the government grants recognition to the company as a separate legal entity.

Related Questions