When a Company Issues 25,000 Shares of $1 Par Value

question 126

Multiple Choice

When a company issues 25,000 shares of $1 par value common stock for $10 per share,the journal entry for this issuance would include:

• A)A debit to Cash for $25,000.
• B)A debit to Additional Paid-in Capital for $25,000.
• C)A credit to Common Stock for $250,000.
• D)A credit to Additional Paid-in Capital for $225,000.

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Definitions:

Precise Intended Meaning

The specific, exact interpretation or definition intended by a speaker or writer, without ambiguity.

Cultural Intelligence

The capability to relate to and work effectively across cultures.

Impression Management

The process where individuals attempt to control the impressions others form of them, especially in social or organizational contexts.

Howard Perlmutter

A scholar known for his work on the typology of global orientations, categorizing organizations as ethnocentric, polycentric, and geocentric.