Which of the Following Journal Entries Is Correct When Common $\quad$

question 24

Multiple Choice

Which of the following journal entries is correct when common stock is sold for cash at a price greater than par value?

• A) Cash
• \( \quad \)Common stock
• \( \quad \)Gain on sale of stock
• B) Cash
• Additional paid-in capital
• \( \quad \)Common Stock
• C) Cash
• \( \quad \)Common Stock
• D) Cash
• \( \quad \)Common stock
• \( \quad \)Additional paid-in capital

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Definitions:

Industrial Policy

Government strategies aimed at improving the competitive position and capabilities of domestic industries and firms.

Taxes, Subsidies, and Regulations

These are tools used by governments to influence economic activity. Taxes are levies on income or purchases, subsidies provide financial support, and regulations set rules for how businesses can operate.

Specific Industries

Specific Industries are distinct sectors of the economy that produce or handle similar types of goods and services, such as the automotive or technology industries.

Displaced Workers

Individuals who have been laid off from their jobs because their positions have been eliminated, usually due to economic changes, technological advancements, or business restructuring.