In the Rare Instance When a Par Value Stock Is

question 65

Multiple Choice

In the rare instance when a par value stock is issued at a cash price below par,the excess of the par value over the amount of cash received should be

• A)credited to a liability account.
• B)debited to the Retained Earnings account.
• C)debited to an account titled Discount on Capital Stock.
• D)credited to the Retained Earnings account.