A Company Is About to Issue 1,000 New Shares of Stock

question 92

Multiple Choice

A company is about to issue 1,000 new shares of stock at a market price of $33 per share.If the par value per share is $4,the increase in capital surplus from this stock issue will be:

• A) $33,000.
• B) $4,000.
• C) $29,000.
• D) $32,000.

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Definitions:

Calendar-year

A one-year period that starts on January 1 and ends on December 31, used in financial reporting and tax calculations.

Promissory Note

A financial document representing a promise to pay a specified sum of money to the holder at a future date or upon demand.

Payee

is the party in a financial transaction who receives the payment.

Maker

In the context of finance, a maker is typically a party that creates or executes an order, often in trading or banking environments.