If a Corporation Issues 5,000 Shares of $5 Par Value

question 52

Multiple Choice

If a corporation issues 5,000 shares of $5 par value common stock for $95,000, the entry would include a credit to:

• A) Common Stock for $95,000.
• B) Paid-in Capital in Excess of Par for $95,000.
• C) Common Stock for $70,000.
• D) Paid-in Capital in Excess of Par for $70,000.

---

Definitions:

Variable Costs

Variable costs are expenses that vary directly with the level of production output, such as materials and labor costs.

Fixed Costs

Charges that stay the same no matter the amount of goods produced or sold, such as rent, salaries, and insurance.

Peak-period Demand

The highest level of demand for a product or service within a specific time frame, often requiring additional resources.

Logistics Department

A division within a company that is responsible for overseeing the flow of goods and materials from suppliers to the end customer, including storage and transportation.