On March 1, 2017, When the Market Price of Wilson's

question 115

Multiple Choice

On March 1, 2017, when the market price of Wilson's stock was $14 per share, 3 million of the options were exercised. The journal entry to record this would include:

• A)A debit to paid-in capital-stock options for $42 million.
• B)A credit to paid-in capital-excess of par for $255 million.
• C)A credit to common stock for $75 million.
• D)All of these are correct.

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Definitions:

Sales Invoice

A document issued by a seller to a buyer, detailing a transaction's products, quantities, and agreed prices for products or services the seller has provided.

Bank Credit Cards

Financial tools issued by banks that allow users to borrow funds for purchases or cash advances, subject to repayment terms and credit limits.

Cash Sales

Transactions where goods or services are exchanged immediately for cash payment.

Normal Credit Balance

The expected balance on the credit side of an account, based on its accounting function (e.g., liabilities, revenues, and equity accounts).