Asked by
emily grace
on Nov 13, 2024
Verified
Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is recorded, credits are made to
A) Common Stock, $14,000
B) Common Stock, $10,000, and Paid-In Capital in Excess of Par-Common Stock, $4,000
C) Common Stock, $4,000, and Paid-In Capital in Excess of Stated Value, $10,000
D) Common Stock, $10,000, and Retained Earnings, $4,000
Par Common Stock
The nominal or face value of a share of common stock, as specified in the corporate charter.
Paid-In Capital
The sum of funds a corporation has obtained from its investors through the sale of stock shares.
Common Stock
A form of corporate equity ownership, representing a claim on a portion of the corporation's profits and assets.
- Acquire knowledge on the procedure and consequences of stock issuance and understand the notion of par value.
- Acquire knowledge of the financial reporting standards and regulatory mandates for corporations, with an emphasis on the procedures for issuing stock beyond its nominal value and accounting for dividends.
Verified Answer
CB
Learning Objectives
- Acquire knowledge on the procedure and consequences of stock issuance and understand the notion of par value.
- Acquire knowledge of the financial reporting standards and regulatory mandates for corporations, with an emphasis on the procedures for issuing stock beyond its nominal value and accounting for dividends.