The Harvester Company Issued 40 Shares Trading at $20/share to Its

question 111

Multiple Choice

The Harvester Company issued 40 shares trading at $20/share to its accountant in full payment for her $900 fee for assisting in setting up the new company. The entry to record the issuance of the stock would include a:

• A) debit to Common Shares for $800.
• B) credit to Common Shares for $900.
• C) credit to Common Shares for $800.
• D) debit to Accounting Fees for $900
• E) credit to Cash for $900.

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Definitions:

Peripheral

Relating to or situated on the edge or periphery of something, often indicating a boundary or outside limit.

Peripheral Route

In the Elaboration Likelihood Model of persuasion, a way of processing information that does not involve deep thinking and focuses on superficial cues.

Central Route

Part of the Elaboration Likelihood Model of persuasion, it involves thoughtful consideration of the arguments presented.

Postdecisional Dissonance

The psychological discomfort experienced after making a difficult decision, often leading to regret or rationalization of the choice made.