How Would the Issue of Ordinary Shares for Cash Be

question 29

Multiple Choice

How would the issue of ordinary shares for cash be entered on a worksheet?

• A)Debit Retained earnings and credit Share capital.
• B)Debit Share capital and credit Proceeds from issue of ordinary shares.
• C)Debit Share capital and credit Retained earnings.
• D)Debit Proceeds from issue of ordinary shares and credit Share capital.

---

Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across states.

Interstate

Refers to activities, agreements, or commerce that occur or are conducted between two or more states.

Express Contract

A contract where the terms of the agreement are explicitly stated in words, whether oral or written.

Implied in Fact Contract

An agreement formed by actions and conduct of the parties involved, rather than written or spoken words.