When a Company Issues 25,000 Shares of $1 Par Value

question 14

Multiple Choice

When a company issues 25,000 shares of $1 par value common stock for $10 per share,the journal entry for this issuance would include:

• A)A debit to Cash for $25,000.
• B)A debit to Additional Paid-in Capital for $25,000.
• C)A credit to Common Stock for $250,000.
• D)A credit to Additional Paid-in Capital for $225,000.

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Definitions:

Emotional Upheaval

A state of intense emotional disturbance or turmoil, often resulting from significant life events or changes.

Biological Maturation

The natural process of physical and psychological growth and development, governed by genetic and environmental factors.

Storm And Stress

A term used to describe the tumultuous period of adolescence marked by conflicts with parents, mood disruptions, and risk behaviors.

Freud

Sigmund Freud was an Austrian neurologist who founded psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.