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:

Right Hemisphere

The right half of the brain, which is typically associated with creative thinking, visual-spatial skills, and processing the emotional content of language.

Diagram

A simplified drawing or plan that represents the essential features of something, often used for explanation or clarification.

Visual Agnosia

A disorder marked by an inability to recognize objects through sight, despite having normal eyesight.

Association Area

Regions of the brain that combine sensory and motor information to carry out complex cognitive tasks.