Which of the Following Is Included in the Entry to Record

question 11

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 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:

Pension Costs

Expenses related to providing retirement benefits to employees, including contributions to pension plans and costs associated with pension plan management.

Postretirement Benefits

Benefits, such as healthcare and life insurance, provided by employers to their employees after they retire.

Accumulated Postretirement Benefit Obligation

This term refers to the total expected cost of providing postretirement benefits to employees, minus any funds set aside to cover these costs.

Unrecognized Prior Service Cost

Costs arising from retroactive benefits granted in a pension plan amendment, not immediately recognized as pension expense in financial statements.