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:

Routine

A sequence of actions regularly followed; a fixed program or procedure.

Internal Operational

Pertaining to the procedures and processes that occur within an organization or system, often focused on efficiency and effectiveness.

Casual Exchanges

Informal interactions or communications that occur in a relaxed, spontaneous manner without strict protocols or formalities.

Highly Casual

A description for an informal and relaxed manner or approach, often characterized by a lack of strictness or formality.