A Firm Issued 10,000 Shares of No Par-Value Common Stock

question 12

Multiple Choice

A firm issued 10,000 shares of no par-value common stock, receiving proceeds of $40 per share. The amount recorded is ________.

• A) $0 in the Common Stock account
• B) $0 in the Paid-in Capital in Excess of Par account
• C) $400,000 in the Common Stock account
• D) $400,000 in the Paid-in Capital in Excess of Par account

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Definitions:

Gross Sales

Gross sales refer to the total of all sales transactions within a specified period before any deductions are made for returns or discounts.

Operating Costs

Expenses associated with the operation and maintenance of a business or property.

Provincial Government

The government authority responsible for governing at the province or territory level in countries such as Canada.

Budget Allocation

The process of distributing available financial resources among different departments, projects, or areas of a business or budget.