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

question 96

Multiple Choice

If a corporation issues 1,000 shares of $1 par value common stock at $5 per share, how should the transaction be accounted for?

• A)debit cash for $5,000 and credit common stock for $5,000
• B)debit cash for $5,000 and credit common stock for $1,000 and credit additional paid-in capital for $4,000
• C)debit cash for $5,000 and credit common stock for $1,000 and credit retained earnings for $4,000
• D)credit cash for $5,000 and debit common stock for $5,000
• E)debit common stock for $1,000 and debit retained earnings for $4,000 and credit cash for $5,000

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Definitions:

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An initial electrocardiogram used to measure the heart's electrical activity, serving as a reference for comparison with future EKGs.

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Diagnostic Testing

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