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.

---

Definitions:

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Consumers

Individuals or entities that purchase goods or services for personal use as opposed to resale or commercial purposes.

Business Ethics

A set of principles and moral values in business that guide behaviors and decision-making.

Correct Decisions

Choices or judgments that are accurate, effective, and based on appropriate consideration of facts and rational analysis.