Post Utme Oau 2021 Accounting Question 16

Practice objective / multiple choice question 16 from the 2021 Post Utme Oau Accounting examination.

Post Utme Oau 2021 Accounting Objective / Multiple Choice

Question 16 POST_UTME_OAU • 2021 • 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 issuance of these shares.

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

C. Debit Paid-in Capital in Excess of Par Value 25,000; Credit Common Stock 50,000; Credit Cash 75,000

Correct Answer D. Debit Cash 75,000; Credit Common Stock 50,000; Credit Paid-in Capital in Excess of Par Value 25,000

Correct Answer

Correct Option:

Debit Cash 75,000; Credit Common Stock 50,000; Credit Paid-in Capital in Excess of Par Value 25,000

This is Post Utme Oau 2021 Accounting Question 16. It is one of the objective questions from the 2021 Post Utme Oau Accounting examination.

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