Kunze Corporation Has $1 Par Value Common Stock with 100,000

question 150

Multiple Choice

Kunze Corporation has $1 par value Common Stock with 100,000 shares authorized and 25,000 shares issued.The journal entry to record Kunze's purchase of 5,000 shares of common stock at $5 per share would be:

• A)debit Common Stock for $5,000,debit Paid-in Capital in Excess of Par-Common for $20,000 and credit Cash for $25,000.
• B)debit Common Stock for $25,000 and credit Cash for $25,000.
• C)debit Cash for $25,000,credit Common Stock for $5,000 and credit Paid-in Capital in Excess of Par-Common for $20,000.
• D)debit Treasury Stock for $25,000 and credit Cash for $25,000.

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Definitions:

Infantile Level

A stage of development characterized by behaviors, emotions, or cognitive abilities typically seen in infants or very young children.

Abnormal Personality

Patterns of thought, feeling, and behavior that significantly deviate from cultural norms and cause distress or impairment.

Historical Determinism

A belief that historical events and outcomes are determined by pre-existing conditions and forces rather than individual free will.

Childhood Conflicts

Internal or external disputes experienced during childhood that can significantly influence personality development and psychological health.