When a Firm Issues 50,000 Shares with a Par Value

question 69

Multiple Choice

When a firm issues 50,000 shares with a par value of $5 for $22 per share, additional paid in capital will:

• A)Decrease by $250,000
• B)Increase by $250,000
• C)Increase by $850,000
• D)Increase by $1,100,000

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Definitions:

Middle Eastern

Pertaining to the geographical region that encompasses Western Asia and Egypt, noted for its distinct cultural, religious, and historical identity.

Merchandise Inventory

The goods and products a retail or wholesale company holds for the purpose of resale to customers.

Liability Account

A financial reporting category that encompasses all obligations or debts a company owes to outside parties.

Merchandise Inventory

The total cost of all the goods held by a company that are available for sale to customers in the retail or wholesale sector.