Which of the Following Is Included in the Entry to Record

question 7

Multiple Choice

Which of the following is included in the entry to record the issuance of 14,000 shares of $7 par value common stock at $21 per share for cash?

• A) Cash is debited for $294,000.
• B) Common Stock is debited for $98,000.
• C) Common Stock is credited for $294,000.
• D) Paid-In Capital in Excess of Par-Common is debited for $196,000.

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Definitions:

Common Stock

Shares representing ownership in a company, giving holders voting rights and a share in the company's profits via dividends.

Revenue Realized

Income that a company has earned and received payment for, typically from sales of goods or services.

Sale Price

The amount of money for which a product or service is sold to the consumer.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company.