Post Utme Skyline University 2017 Accounting Question 35

Practice objective / multiple choice question 35 from the 2017 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2017 Accounting Objective / Multiple Choice
Question 35 POST_UTME_SKYLINE_UNIVERSITY • 2017 • ACCOUNTING • objective

A company issued 10,000 shares of 1 par value at a premium of 4 per share. The shares were sold for 8 each. Prepare the journal entry to record the issue of these shares.

Answer Options

Correct Answer A. Debit Cash 80,000, Credit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 40,000
B. Debit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 40,000, Credit Cash 80,000
C. Debit Common Stock 60,000, Credit Paid-in Capital in Excess of Par Value 20,000, Credit Cash 80,000
D. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 30,000, Credit Cash 80,000
Correct Answer
A
Correct Option:
Debit Cash 80,000, Credit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 40,000

About This Question

This is Post Utme Skyline University 2017 Accounting Question 35. It is one of the objective questions from the 2017 Post Utme Skyline University Accounting examination.

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