Post Utme Bowen University 2017 Accounting Question 33

Practice objective / multiple choice question 33 from the 2017 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2017 Accounting Objective / Multiple Choice
Question 33 POST_UTME_BOWEN_UNIVERSITY • 2017 • ACCOUNTING • objective

A company issued 10,000 shares of 1 par value at a premium of 3 per share. The proceeds from the sale of these shares were used to purchase a piece of land. Prepare the journal entry to record the issuance of the shares.

Answer Options

A. Debit Cash 30,000, Credit Common Stock 30,000
Correct Answer B. Debit Land 30,000, Credit Common Stock 30,000
C. Debit Cash 30,000, Credit Land 30,000
D. Debit Common Stock 30,000, Credit Land 30,000
Correct Answer
B
Correct Option:
Debit Land 30,000, Credit Common Stock 30,000

About This Question

This is Post Utme Bowen University 2017 Accounting Question 33. It is one of the objective questions from the 2017 Post Utme Bowen University Accounting examination.

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