The Entry to Record the Issuance of 6,000 Common Shares

question 91

Multiple Choice

The entry to record the issuance of 6,000 common shares for $12.50 per share includes a:

• A) credit to Cash for $75,000
• B) debit to Common Shares for $75,000
• C) credit to Common Shares for $75,000
• D) credit to Retained Earnings for $75,000

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, after accounting for purchases and sales.

Merchandise Inventory

Merchandise inventory refers to the goods available for sale to customers, which are considered current assets on a company's balance sheet.

Periodic Inventory System

An accounting method where inventory is physically counted at specific periods to determine the cost of goods sold.

FIFO

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for First In, First Out.