Click t e qu s below 1. If the stock is issued for a price that is more than its

Question

Click t e qu s below 1. If the stock is issued for a price that is more than its par value, the stock a. has been sold at a premium. b. has been sold at a discount. c. has been sold at its stated value. d. is converted to no-par stock 2. A journal entry to record the issuance of preferred stock above par would include a a. credit to Cash. b. credit to Paid-In Capital in Excess of Par c, debit to Preferred Stock d. debit to Paid-In Capital in Excess of Par 10, Blarney Corporation issued for cash 10,000 shares of no-par common stock at s40. The journal entry to r 3. On March a. debit to Cash for $10,000 b. credit to Cash for $400,000. c, credit to Common Stock for $400,000 d. credit to Common Stock for $100,000. 1 more

Explanation / Answer

1) If a stock is issued more than par value is called issued at premium

so answer is a) Has been sold at a premium

2) Cash debit; Preferred stock credit and paid in capital in excess of par value credit

so answer is b) credit to paid in capital in excess of par

3) Cash debit with 400000; common stock credit with 400000

so answer is c) credit to common stock for $400000

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