Kunze Corporation Has $1 Par Value Common Stock with 100,000

question 63

Multiple Choice

Kunze Corporation has $1 par value Common Stock with 100,000 shares authorized and 25,000 shares issued.The journal entry to record Kunze's purchase of 10,000 shares of common stock at $4 per share would be:

• A)debit Common Stock for $10,000,debit Paid-in Capital in Excess of Par-Common for 30,000 and credit Cash for $40,000.
• B)debit Common Stock for $40,000 and credit Cash for $40,000.
• C)debit Cash for $40,000,credit Common Stock for $10,000 and credit Paid-in Capital in Excess of Par-Common for $30,000.
• D)debit Treasury Stock for $40,000 and credit Cash for $40,000.

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Definitions:

Observations

Data points or items recorded during an experiment or research study.

Determination

The firmness of purpose or the process of establishing something exactly by calculation or research.

Goodness Of Fit

A statistical analysis to determine how well sample data fit a distribution from a population with a normal distribution.

Regression Equation

The equation that describes how the mean or expected value of the dependent variable is related to the independent variable; in simple linear regression, E(y) = b0 + b1x.