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:

Lymphocytes

White blood cells that play a significant role in the immune system, including T cells and B cells.

Antibodies

Proteins produced by the immune system to help fight off pathogens such as viruses and bacteria.

Cytokines

Chemicals secreted by T lymphocytes in response to an antigen. Cytokines increase T- and B-cell production, kill cells that have antigens, and stimulate red bone marrow to produce more white blood cells.

Major Histocompatibility Complex

A group of genes that play a critical role in the immune system's recognition of foreign molecules.