Post Utme Skyline University 2017 Accounting Question 33

Practice objective / multiple choice question 33 from the 2017 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2017 Accounting Objective / Multiple Choice
Question 33 POST_UTME_SKYLINE_UNIVERSITY • 2017 • ACCOUNTING • objective

A company issued 5,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 6 each. Prepare the journal entry to record the issue of these shares.

Answer Options

Correct Answer A. Debit Cash 30,000, Credit Common Stock 15,000, Credit Paid-in Capital in Excess of Par Value 15,000
B. Debit Common Stock 15,000, Credit Paid-in Capital in Excess of Par Value 15,000, Credit Cash 30,000
C. Debit Common Stock 25,000, Credit Paid-in Capital in Excess of Par Value 5,000, Credit Cash 30,000
D. Debit Common Stock 20,000, Credit Paid-in Capital in Excess of Par Value 10,000, Credit Cash 30,000
Correct Answer
A
Correct Option:
Debit Cash 30,000, Credit Common Stock 15,000, Credit Paid-in Capital in Excess of Par Value 15,000

About This Question

This is Post Utme Skyline University 2017 Accounting Question 33. It is one of the objective questions from the 2017 Post Utme Skyline University Accounting examination.

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