Bradley Corporation Issued 10,000 Shares of Common Stock on January

question 53

Multiple Choice

Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value of $0.01 per share and was sold for cash at par. The journal entry to record this transaction would:

• A) debit Cash $100 and credit Common stock $100.
• B) credit Cash $10,000 and debit Common stock $10,000.
• C) debit Paid-in capital $9,900,and credit Common stock $9,900.
• D) debit Cash $10,000, credit Common stock $100, and credit Paid-in capital $9,900.

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Definitions:

Inventories

Refers to the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Domestic Net Worth

Domestic Net Worth calculates the total asset value of a nation's residents, companies, and government less all liabilities and debts within the country.

Trillion

A numerical value represented by 1 followed by 12 zeros, commonly used in discussions of national economies and government budgets.

Fixed-Income Security

A type of investment that pays regular income in the form of interest or dividends, such as bonds or preferred stock.