A Company Issued 60 Shares of $100 Par Value Common

question 2

Multiple Choice

A company issued 60 shares of $100 par value common stock for $7,000 cash.The journal entry to record the issuance is:

• A)Debit Cash $7,000;credit Common Stock $7,000.
• B)Debit Investment in Common Stock $7,000;credit Cash $7,000.
• C)Debit Cash $7,000;credit Common Stock $6,000;credit Paid-in Capital in Excess of Par Value,Common Stock $1,000.
• D)Debit Common Stock $6,000,debit Investment in Common Stock $1,000;credit Cash $7,000.
• E)Debit Cash $7,000;credit Paid-in Capital in Excess of Par Value,Common Stock $6,000,credit Common Stock $1,000.

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Definitions:

Tumor

An abnormal growth of tissue, which can be benign (non-cancerous) or malignant (cancerous).

Myelomas

A type of cancer that arises from plasma cells in the bone marrow.

IRT

Interactive Response Technology, a system used in clinical trials for managing patients, supplies, and data.

Onc/o

A prefix used in medical terminology relating to tumors or cancer.