Post Utme Joseph Ayo Babalola University 2024 Accounting Question 21

Practice objective / multiple choice question 21 from the 2024 Post Utme Joseph Ayo Babalola University Accounting examination.

Post Utme Joseph Ayo Babalola University 2024 Accounting Objective / Multiple Choice
Question 21 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2024 • ACCOUNTING • objective

A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Prepare the journal entry to record the issue of these shares.

Answer Options

A. Debit Cash 75,000, Credit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000
B. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
Correct Answer C. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
D. Debit Paid-in Capital in Excess of Par Value 25,000, Credit Common Stock 50,000, Credit Cash 75,000
Correct Answer
C
Correct Option:
Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000

About This Question

This is Post Utme Joseph Ayo Babalola University 2024 Accounting Question 21. It is one of the objective questions from the 2024 Post Utme Joseph Ayo Babalola University Accounting examination.

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