Post Utme Noun 2019 Accounting Question 31

Practice objective / multiple choice question 31 from the 2019 Post Utme Noun Accounting examination.

Post Utme Noun 2019 Accounting Objective / Multiple Choice
Question 31 POST_UTME_NOUN • 2019 • ACCOUNTING • objective

A company issued 10,000 shares of 1 par value at 5 per share. The company also issued 5-year, 6% debentures of 100,000 at 95. Prepare the journal entry to record the issuance of the debentures.

Answer Options

A. Debit Cash 495,000, Credit Debentures 100,000, Credit Share Capital 100,000
B. Debit Cash 495,000, Credit Debentures 100,000, Credit Share Capital 95,000
Correct Answer C. Debit Cash 495,000, Credit Debentures 100,000, Credit Share Capital 100,000
D. Debit Cash 495,000, Credit Debentures 100,000, Credit Share Capital 105,000
Correct Answer
C
Correct Option:
Debit Cash 495,000, Credit Debentures 100,000, Credit Share Capital 100,000

About This Question

This is Post Utme Noun 2019 Accounting Question 31. It is one of the objective questions from the 2019 Post Utme Noun Accounting examination.

View More Post Utme Noun 2019 Accounting Questions More Post Utme Noun Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support