The Entry to Record the Issuance of 1,000 Shares of $2

question 3

Multiple Choice

The entry to record the issuance of 1,000 shares of $2 stated-value common stock for $10 a share consists of a debit to Cash for $10,000 and a credit to Common Stock for

• A) $10,000.
• B) $2,000 and a credit to Paid-in Capital in Excess of Par Value-Common Stock for $8,000.
• C) $2,000 and a credit to Paid-in Capital in Excess of Stated Value-Common Stock for $8,000.
• D) $2,000 and a credit to Gain On Sale of Common Stock for $8,000.

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Definitions:

UCC

Uniform Commercial Code, a standardized set of laws and regulations intended to facilitate the smooth transaction of commerce among American states.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States.

Contracting Parties

The individuals, entities, or organizations that enter into a contractual agreement.

Flexibility

The quality of being adaptable or the capacity to be easily modified or adjusted in response to changing conditions.