Post Utme Abu 2022 Accounting Question 6

Practice objective / multiple choice question 6 from the 2022 Post Utme Abu Accounting examination.

Post Utme Abu 2022 Accounting Objective / Multiple Choice

Question 6 POST_UTME_ABU • 2022 • ACCOUNTING • objective

A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 5 each. Prepare the journal entry to record the issue of these shares.

Correct Answer A. Debit Cash 50,000, Credit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 10,000

B. Debit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 10,000, Credit Cash 50,000

C. Debit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 10,000, Debit Cash 50,000

D. Debit Paid-in Capital in Excess of Par Value 10,000, Credit Common Stock 40,000, Credit Cash 50,000

Correct Answer

Correct Option:

Debit Cash 50,000, Credit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 10,000

This is Post Utme Abu 2022 Accounting Question 6. It is one of the objective questions from the 2022 Post Utme Abu Accounting examination.

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