Alma Corp Issues 1,000 Shares of $10 Par Common Stock at at $14

question 41

Multiple Choice

Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is recorded, credit(s) are made to

• A) Common Stock, $14,000
• B) Common Stock, $10,000, and Paid-In Capital in Excess of Par, $4,000
• C) Common Stock, $4,000, and Paid-In Capital in Excess of Stated Value, $10,000
• D) Common Stock, $10,000, and Retained Earnings, $4,000

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Definitions:

External Market Price

The price at which a product or service is sold in the open market to external customers, outside of the company or organization.

Producing Division

The producing division refers to a department or segment within a company responsible for the production of goods or services.

Decentralised Organisation

A type of organizational structure where decision-making is distributed among various levels and departments rather than being concentrated at the top.

Centralised Organisation

An organizational structure where decision-making and authority are concentrated at the top levels of management.