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

question 54

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:

Secondary Circuit

In automotive systems, this usually refers to a part of the electrical or fuel system that functions after the primary components, such as the spark plug's ignition in a car's engine.

Air Brake Systems

A type of brake system used in large, heavy vehicles where compressed air applies pressure to the brake pad or shoe.

Relay Valve Crack Pressures

The minimum pressure that must be reached in a pneumatic system before a relay valve opens, allowing air to flow through and activate other components.

Trailer Train Combination

The coupling of a tractor unit with one or more trailers in a configuration designed to transport goods, optimizing for load capacity and road safety.