Osbourne,Inc

question 18

Multiple Choice

Osbourne,Inc.issued 50,000 shares of common stock in exchange for manufacturing equipment.The equipment has a fair value of $1,210,000.The stock has a par value of $0.02 per share.The journal entry to record this transaction includes a ________.

• A)debit to Cash for $12,090,000
• B)credit to Gain on Sale of Common Stock for $1,260,000
• C)credit to Paid-In Capital in Excess of Par-Common for $1,209,000
• D)credit to Common Stock-$0.02 Par Value for $1,210,000

---

Definitions:

Colostomy Pouching System

A medical device used for collecting waste from the body through a surgically created opening in the abdomen.

Colon Cancer

A type of cancer that begins in the large intestine (colon), which is the final part of the digestive tract.

Colostomy

A surgical procedure that creates an opening (stoma) from the colon to the surface of the abdomen to eliminate waste.

Peristalsis

The involuntary contractions and relaxations of the muscles in the digestive tract, which move contents through the system.