Post Utme Joseph Ayo Babalola University 2024 Accounting Question 23

Practice objective / multiple choice question 23 from the 2024 Post Utme Joseph Ayo Babalola University Accounting examination.

Post Utme Joseph Ayo Babalola University 2024 Accounting Objective / Multiple Choice
Question 23 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2024 • ACCOUNTING • objective

A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 4 each. Prepare the journal entry to record the issue of these shares.

Answer Options

A. Debit Cash 40,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000
B. Debit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000, Credit Cash 40,000
Correct Answer C. Debit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000, Credit Cash 40,000
D. Debit Paid-in Capital in Excess of Par Value 30,000, Credit Common Stock 10,000, Credit Cash 40,000
Correct Answer
C
Correct Option:
Debit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000, Credit Cash 40,000

About This Question

This is Post Utme Joseph Ayo Babalola University 2024 Accounting Question 23. It is one of the objective questions from the 2024 Post Utme Joseph Ayo Babalola University Accounting examination.

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