A Corporation Issued 5,000 Shares of Its $1 Par Value

question 48

Multiple Choice

A corporation issued 5,000 shares of its $1 par value stock at $16 per share. The entry to record this transaction would be:

• A)Debit Cash $80,000; credit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Common Stock $75,000.
• B)Debit Cash $80,000; credit Common Stock $80,000.
• C)Debit Cash $80,000; credit Common Stock $5,000; credit Paid-in Capital in Excess of Par Value, Common Stock $75,000.
• D)Debit Treasury Stock $80,000; credit Cash $80,000.
• E)Debit Common Stock $80,000; debit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Cash $75,000.

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to cope with reality or maintain self-image.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Repression

A defense mechanism where unpleasant thoughts, feelings, or desires are unconsciously pushed out of conscious awareness.

Psychosexual Stage

A concept in Freudian psychology that describes five stages of child development, each characterized by a different focus of libido (sexual drive).