The Entry to Record the Issuance of Common Stock at a Price

question 146

Multiple Choice

The entry to record the issuance of common stock at a price above its par value includes:

• A)A credit to Cash.
• B)A credit to a liability account for the difference between the price paid by the stockholders and the par value of the stock.
• C)A credit to Additional Paid-in Capital: Common Stock.
• D)A debit to Common Stock.

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Definitions:

Nominal Group

A structured brainstorming process involving individuals contributing ideas independently to solve problems or make decisions.

Rank Order

The hierarchical arrangement of items or individuals based on certain criteria, reflecting their relative positions or importance.

Results-Oriented Structure

An organizational design that focuses on outcomes and results, rather than processes or inputs.

Internal Organisational

Pertaining to the inner workings and structures within an organization, such as its culture, policies, and procedures.