Chaney Corporation Issued 20,000 Shares of Common Stock on January

question 108

Multiple Choice

Chaney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of $1.00 per share and was sold at $30 per share. The journal entry for this transaction would:

• A) credit Cash $600,000, debit Common stock $20,000, and debit Paid-in capital $580,000.
• B) debit Cash $600,000 and credit Paid-in capital $600,000.
• C) debit Cash $600,000, credit Common stock $20,000, and credit Paid-in capital $580,000.
• D) debit Cash $600,000 and credit Common stock $600,000.

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Definitions:

Social Institution

denotes the organized patterns of belief and behavior centered around fundamental social needs, such as families, education, religion, and economic systems.

Skin Color

The pigmentation of someone's skin, primarily determined by genetic inheritance and exposure to the sun, which has historically been used as a basis for social classification and discrimination.

English Common Law

A legal system originated in England, characterized by the development of law through judicial decisions and precedents, forming the basis of the legal system in England and many countries that were once British colonies.

Sugar

A sweet-tasting, soluble carbohydrate found in many plants, extensively used as a sweetener in food and beverages.