Post Utme Uniosun 2024 Accounting Question 36

Practice objective / multiple choice question 36 from the 2024 Post Utme Uniosun Accounting examination.

Post Utme Uniosun 2024 Accounting Objective / Multiple Choice
Question 36 POST_UTME_UNIOSUN • 2024 • 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 issue of these shares.

Answer Options

A. Debit Cash 75,000; Credit Common Stock 50,000; Credit Paid-in Capital in Excess of Par Value 25,000
B. Debit Common Stock 50,000; Credit Paid-in Capital in Excess of Par Value 25,000; Credit Cash 75,000
C. Debit Common Stock 50,000; Credit Paid-in Capital in Excess of Par Value 25,000; Credit Cash 75,000
Correct Answer D. Debit Cash 75,000; Credit Common Stock 50,000; Credit Paid-in Capital in Excess of Par Value 25,000
Correct Answer
D
Correct Option:
Debit Cash 75,000; Credit Common Stock 50,000; Credit Paid-in Capital in Excess of Par Value 25,000

About This Question

This is Post Utme Uniosun 2024 Accounting Question 36. It is one of the objective questions from the 2024 Post Utme Uniosun Accounting examination.

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