Victory Corporation Issues 17,000 Shares of Its $2 Par Value

question 131

Multiple Choice

Victory Corporation issues 17,000 shares of its $2 par value common stock for $152,025 cash on February 20.What is the appropriate journal entry to record this transaction?

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Definitions:

Consideration

Something of value exchanged between parties in a contract, which can include money, services, or goods, making the contract legally binding.

Indorsement

A signature or stamp placed on a negotiable instrument (such as a check) that indicates the future control or ownership of the instrument.

Secondary Liability

Secondary liability occurs when a party is held responsible for the actions of another, typically in situations where the primary party fails to fulfill their obligations.

Contingent Liability

A potential financial obligation that may occur, depending on the outcome of a future event.