A Corporation Issued 6,000 Shares of Its $10 Par Value

question 26

Multiple Choice

A corporation issued 6,000 shares of its $10 par value common stock in exchange for land that has a market value of $84,000.The entry to record this transaction would include:

• A)A debit to Common Stock for $60,000.
• B)A debit to Land for $60,000.
• C)A credit to Land for $60,000.
• D)A credit to Contributed Capital in Excess of Par Value,Common Stock for $24,000.
• E)A credit to Common Stock for $84,000.

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Definitions:

1933 Act

Refers to the Securities Act of 1933, a U.S. legislation enacted to ensure more transparency in financial statements and to establish laws against misrepresentation and fraudulent activities in the securities markets.

Registration

The process of recording information, typically related to a person, company, or property, in an official or regulatory database.

Sarbanes-Oxley Act

A U.S. law enacted to protect investors by making corporate disclosures more reliable and accurate following the Enron and WorldCom financial scandals.

Audit Clients

Entities, whether individuals or organizations, whose financial statements and practices are examined in an audit for accuracy, compliance, and truthfulness.