The Burnham Corp

question 90

Multiple Choice

The Burnham Corp.issues 2,000 shares of no-par stock for $10 cash per share.How would the company record this transaction?

• A)Debit Cash for $20,000 and credit Paid-In Capital,Common Stock for $20,000.
• B)Debit Cash for $20,000 and credit Common Stock,No-Par Value for $20,000.
• C)Debit Cash for $20,000 and credit Paid-In Capital for $20,000.
• D)Debit Cash for $20,000 and credit Paid-In Capital in Excess of Par Value,Common Stock for $20,000.
• E)Debit Common Stock,No-Par Value for $20,000 and credit Cash for $20,000.

---

Definitions:

Employer-Provided

Services or benefits offered to employees directly by their employer, such as health insurance, retirement plans, or transportation allowances.

Less Cost

Refers to a reduction in expenses or costs incurred by an organization or individual.

Direct Pay

Wages or salaries that employees receive directly from their employer as compensation for their labor.

Employment Insurance

A government program that provides financial assistance to unemployed workers who meet certain eligibility criteria.