On January 1, 2012, Georgi Company Was Authorized to Issue

question 74

Multiple Choice

On January 1, 2012, Georgi Company was authorized to issue 10,000 shares of $2 par common stock and 5,000 shares of $5 preferred stock. Given this information, if Georgi Company issued 3,000 shares of common stock for $7 per share on January 10, 2012, the entry to record the issuance of the stock would include a

• A) Debit to Cash of $6,000
• B) Credit to Paid-In Capital in Excess of Par, Common Stock of $6,000
• C) Credit to Common Stock of $6,000
• D) Debit to Cash of $15,000

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Definitions:

Impressment

The act of forcibly taking men into a navy or military service without notice, often practiced by the British Navy against American sailors in the early 19th century.

Macon's Bill Number 2

Legislation passed by the United States Congress in 1810, aimed at motivating Great Britain and France to stop seizing American ships during the Napoleonic Wars by restoring trade with the country that ceased its attacks on American shipping.

Commercial Rights

The legal rights granted to businesses and individuals to engage in activities related to commerce, trade, and intellectual property.

Embargo Act

A historical law passed by the United States in 1807, prohibiting American ships from trading in all foreign ports to avoid conflicts.