A Company Issued 1,000 Shares of $10 Par Value Common

question 78

Multiple Choice

A company issued 1,000 shares of $10 par value common stock in exchange for $15,000.Which of the following correctly describes the impact of this transaction on the financial statements?

• A)A $15,000 gain is reported on the income statement.
• B)Contributed capital in the amount of $10,000 is reported on the balance sheet.
• C)Common stock is reported on the balance sheet at $15,000.
• D)Additional paid-in capital of $5,000 is reported on the balance sheet.

---

Definitions:

Psychological Laboratory

A controlled setting designed for conducting research, experiments, and studies in psychology, often equipped with tools and instruments to measure and observe human behavior.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Gestalt Psychologist

A psychologist who studies the human mind and behavior as a whole, rather than breaking it down into parts, emphasizing the idea that "the whole is greater than the sum of its parts."

Unconscious Influences

Forces or processes occurring in the mind without one's awareness, impacting thoughts, feelings, and behaviors, as explored in psychoanalytic theories.