Post Utme Skyline University 2017 Accounting Question 31

Practice objective / multiple choice question 31 from the 2017 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2017 Accounting Objective / Multiple Choice

Question 31 POST_UTME_SKYLINE_UNIVERSITY • 2017 • ACCOUNTING • objective

A company issued 10,000 shares of 1 par value at a premium of 2 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 30,000, Credit Paid-in Capital in Excess of Par Value 10,000

B. Debit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000, Credit Cash 40,000

C. Debit Common Stock 20,000, Credit Paid-in Capital in Excess of Par Value 20,000, Credit Cash 20,000

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

Correct Answer

Correct Option:

Debit Common Stock 30,000, Credit Paid-in Capital in Excess of Par Value 10,000, Credit Cash 40,000

About This Question

This is Post Utme Skyline University 2017 Accounting Question 31. It is one of the objective questions from the 2017 Post Utme Skyline University Accounting examination.

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