A Firm Has $3,500,000 in Its Common Stock Account and $2,500,000

question 119

Multiple Choice

A firm has $3,500,000 in its common stock account and $2,500,000 in its retained earnings account.The firm issued 100,000 shares of common stock.What was the original issue price if only one stock issue has ever been sold?

• A) $35 per share
• B) $25 per share
• C) $60 per share
• D) Not enough information to tell

Acquire the ability to journalize transactions involving notes receivable, including dishonor and subsequent actions.

Understand the concept and components of internal control systems over cash.

Recognize the importance of segregating duties in maintaining a strong internal control system.

Identify the internal control objectives related to safeguarding assets, ensuring financial report accuracy, and compliance with laws.

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Definitions:

Overdraft

A check written on a checking account in which there are insufficient funds to cover the amount of the check.

Joint-Account Owner

An individual who shares ownership and control over a bank account with one or more persons.

Contractual Rights

Legal entitlements granted to individuals or entities based on the terms of a contract.

Duties Of The Bank

The legal and ethical obligations that a bank owes to its customers, including safeguarding deposits, providing secure transactions, and rendering accurate information.