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

question 58

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

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Definitions:

Null Hypothesis

A hypothesis that suggests there is no statistical significance between the two variables in the hypothesis.

Null Hypothesis

An assumption made for statistical testing that indicates no effect or no difference, used as a basis for comparison.

Test Statistic

A value calculated from sample data during hypothesis testing. It is used to decide whether to reject the null hypothesis.

Population Mean

The average value of a set of characteristics for an entire population.