Post Utme Unilag 2023 Accounting Question 6

Practice objective / multiple choice question 6 from the 2023 Post Utme Unilag Accounting examination.

Post Utme Unilag 2023 Accounting Objective / Multiple Choice
Question 6 POST_UTME_UNILAG • 2023 • 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.

Answer Options

A. Debit Cash 75,000, Credit Common Stock 50,000, Credit Additional Paid-in Capital 25,000
B. Debit Cash 75,000, Credit Common Stock 50,000, Credit Additional Paid-in Capital 25,000
C. Debit Cash 75,000, Credit Common Stock 50,000, Credit Additional Paid-in Capital 25,000
Correct Answer D. Debit Cash 75,000, Credit Common Stock 50,000, Credit Additional Paid-in Capital 25,000
Correct Answer
D
Correct Option:
Debit Cash 75,000, Credit Common Stock 50,000, Credit Additional Paid-in Capital 25,000

About This Question

This is Post Utme Unilag 2023 Accounting Question 6. It is one of the objective questions from the 2023 Post Utme Unilag Accounting examination.

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