Post Utme Oau 2021 Accounting Question 19

Practice objective / multiple choice question 19 from the 2021 Post Utme Oau Accounting examination.

Post Utme Oau 2021 Accounting Objective / Multiple Choice

Question 19 POST_UTME_OAU • 2021 • ACCOUNTING • objective

A company issued 1,000 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 15,000; Credit Common Stock 10,000; Credit Paid-in Capital in Excess of Par Value 5,000

B. Debit Common Stock 10,000; Credit Paid-in Capital in Excess of Par Value 5,000; Credit Cash 15,000

C. Debit Paid-in Capital in Excess of Par Value 5,000; Credit Common Stock 10,000; Credit Cash 15,000

Correct Answer D. Debit Cash 15,000; Credit Common Stock 10,000; Credit Paid-in Capital in Excess of Par Value 5,000

Correct Answer

Correct Option:

Debit Cash 15,000; Credit Common Stock 10,000; Credit Paid-in Capital in Excess of Par Value 5,000

This is Post Utme Oau 2021 Accounting Question 19. It is one of the objective questions from the 2021 Post Utme Oau Accounting examination.

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