If a Corporation Issues 10,000 Shares of $1 Par Value

question 145

Multiple Choice

If a corporation issues 10,000 shares of $1 par value common stock for $9000,the journal entry would include a credit to:

• A)Common Stock for $9000.
• B)Paid-in Capital in Excess of Par-Common for $9000.
• C)Common Stock for $10,000.
• D)Retained Earnings for $10,000.

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Definitions:

Agency Relationship

A legal arrangement in which one party, the agent, is authorized to act on behalf of another, the principal, in conducting business transactions.

Oral Agreement

A verbal contract between parties that is legally binding in certain contexts, though more difficult to prove than written ones.

Language Barrier

A challenge in communication between people who do not share a common language.

Foreign Market

Markets outside the domestic borders of a company's country of origin where it operates or sells its products and services.