Osbourne Company Issued 50,000 Shares of Common Stock in Exchange

question 167

Multiple Choice

Osbourne Company issued 50,000 shares of common stock in exchange for manufacturing equipment. The equipment was valued at $1,000,000. The stock has par value of $0.01 per share. The entry to record this transaction would include which of the following line items?

• A) Debit Cash $5,000.
• B) Credit Gain on sale of common stock $1,050,000.
• C) Credit Paid-in capital $999,500.
• D) Credit Common stock $1,000,000.

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Definitions:

Sensory Structures

Components of an organism that are specialized to detect changes in the environment or within the organism itself.

Eating Habits

The patterns and practices associated with how organisms, especially humans, consume food, significantly impacting health, culture, and society.

Mollusks

Invertebrate animals with soft, unsegmented bodies, many of which have shells, such as snails and clams.