A Company Sold 200 Shares of Common Stock with a Par

question 96

Multiple Choice

A company sold 200 shares of common stock with a par value of $5 at a price of $13 per share.What is the effect on the accounts of this transaction?

• A) Increase cash $2,600; increase retained earnings $2,600
• B) Increase cash $1,000; increase common stock $1,000
• C) Increase cash $2,600; increase common stock $1,000 and increase paid-in capital $1,600
• D) Increase cash $2,600; increase common stock $1,600 and increase paid-in capital $1,000

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Definitions:

Electronics Firms

Companies that specialize in designing, manufacturing, selling, or distributing electronic devices and components.

NAFTA

The North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that eliminated most tariffs and trade barriers between the countries.

Country Success Factors

The critical elements or conditions that contribute to the economic, social, and political success of a country.

Region Success Factors

Key elements that contribute to the achievement or performance within a specific geographical area or region.