If Everly Company Issues 1,000 Shares of $5 Par Value

question 138

Multiple Choice

If Everly Company issues 1,000 shares of $5 par value common stock for $75,000, the account

• A) Common Stock will be credited for $75,000.
• B) Paid-in Capital in excess of Par Value will be credited for $5,000.
• C) Paid-in Capital in excess of Par Value will be credited for $70,000.
• D) Cash will be debited for $70,000.

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Definitions:

Time Clocks

Devices used to record the start and end times of employees' work hours.

Internal Control System

A process put in place by a company's management and board of directors to help ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Protect Assets

Measures and strategies implemented by a business or individual to safeguard tangible and intangible assets from loss, theft, or damage.

Internal Control Systems

Procedures and mechanisms implemented by a business to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.