A Corporation Sold 10,000 Shares of Its No-Par Common for $10.00

question 94

Multiple Choice

A corporation sold 10,000 shares of its no-par common for $10.00 per share. The corporation will not sell its shares for less than $6.00 per share, because this is "necessary" to protect the bondholders. The corporation should record this transaction as follows: $\begin{array}{|l|l|l|l|}\hline 1&\text { Common shares } & 60,000 & \\\hline &\text { Contributed capital in excess of par } & 40,000 & \\\hline &\text { Cash } & & 100,000 \\\hline 2&\text { Common shares } & 100,000 & \\\hline &\text { Cash } & & 100,000 \\\hline 3&\text { Cash } & 100,000 & \\\hline &\text { Common shares } & & 100,000 \\\hline 4&\text { Cash } & 100,000 & \\\hline &\text { Common shares } & & 60,000 \\\hline &\text { Contributed capital in excess of par } & & 40,000 \\\hline\end{array}$

• A) Choice 1
• B) Choice 2
• C) Choice 3
• D) Choice 4

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Definitions:

Chest Compressions

A lifesaving technique that involves rhythmically pressing down on the chest to mimic the heart's pumping and maintain blood flow during cardiac arrest.

American Heart Association

A nonprofit organization in the United States that focuses on cardiovascular health promotion and disease reduction through research, education, and advocacy.

Resuscitation Guidelines

Recommendations and procedures designed to provide lifesaving techniques such as CPR to individuals in cardiac arrest or respiratory failure.

Automated External Defibrillator

A portable electronic device that automatically diagnoses life-threatening cardiac arrhythmias and can treat them through defibrillation.