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:

Pro Forma Statement

A financial statement based on hypothetical scenarios or assumptions, used to project future financial performance.

Maximum Capacity

The highest level of output that a company can sustain to produce in a given period under normal operating conditions.

Dividend

Revenue shared by a company with its shareholders, often as a disbursement of profits.