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

question 14

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:

Range

The gap between the maximum and minimum values within a set of data.

Standard Deviation

A metric for evaluating the degree of spread or deviation in a collection of data points.

Bimodal

A frequency distribution having two different values that are most commonly observed or two peaks.

Variability

Refers to the extent to which data points in a statistical distribution or dataset differ from the average or mean value.