The Entry to Record Common Stock Issued at Its Par

question 82

Multiple Choice

The entry to record common stock issued at its par value includes a:

• A) debit to Retained Earnings.
• B) debit to Common Stock.
• C) credit to Retained Earnings.
• D) credit to Common Stock.

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Definitions:

Liability and Asset Accounts

Accounts on a balance sheet that represent obligations to pay others (liabilities) and resources owned by a company (assets).

Financial Statements

Official accounts detailing the economic operations and condition of an enterprise, person, or any other unit.

Unearned Legal Fees

Money received by an entity for legal services yet to be performed, recognized as a liability until the services are rendered.

Adjusting Entry

A journal entry made at the end of an accounting period to update the ledger accounts for accruals, deferrals, and other adjustments necessary to ensure accurate financial reports.