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:

Slave States

States in the U.S. before 1865 where the institution of slavery was legally permitted.

Union Army

The land force that fought for the Northern states during the American Civil War, opposing the Confederacy and fighting to preserve the Union and end slavery.

Steamer Planter

A Confederate steamship hijacked in 1862 by Robert Smalls, an enslaved African American who then sailed it to freedom and surrendered it to the Union.

Robert Smalls

An African American who escaped slavery to become a Union naval hero and later a US Congressman.