Osbourne, Inc. issued 60,000 shares of common stock in exchange for manufacturing equipment. The equipment has a fair value of $1,420,000. The stock has a par value of $0.05 per share. The journal entry to record this transaction includes a ________
A) debit to Cash for $14,170,000
B) credit to Gain on Sale of Common Stock for $1,480,000
C) credit to Paid-In Capital in Excess of Par-Common for $1,417,000
D) credit to Common Stock-$0.05 Par Value for $1,420,000
C .C)
Equipment 1,420,000
Common Stock—$0.05 Par Value (60,000 x $0.05 ) 3,000
Paid-In Capital in Excess of Par-Common ($1,420,000 - $3,000 ) 1,417,000
You might also like to view...
The fixed costs per unit will ________
A) increase as production decreases B) decrease as production decreases C) remain the same as production levels change D) increase as production increases
Which of the following should be the first step of developing an advertising campaign?
A) set the budget objectives B) establish the advertising message C) understand the target audience D) draft the creative brief E) select the execution format