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:

Euphemisms

The use of softer or less direct language in place of terms deemed too harsh or straightforward when mentioning something unpleasurable or awkward.

Explaining Death

The process of describing or clarifying the concept of death, often in the context of education or counseling.

Death Conceptualizations

Refers to the various ways in which cultures, societies, and individuals understand and give meaning to death, including beliefs about what happens after death.

Factors

Elements or circumstances that contribute to a result, often used in analysis to identify causes of a specific outcome or condition.