When 1,000 shares of $3 stated value common stock is issued at $18 per share, ________
A) Common Stock - $3 Stated is credited for $18,000
B) the account titled Paid-In Capital in Excess of Stated is used to record the issue price of the stock
C) the difference between the issue price and the stated value is credited to Paid-In Capital in Excess of Stated
D) the accounting is exactly the same as the accounting for par value stock
C
You might also like to view...
The _____ measures human consumption of renewable natural resources.
Fill in the blank(s) with the appropriate word(s).
An investor is faced with the decision of whether to invest in a stock with an expected return of 14% or a stock in the same industry with an expected 20% return. Which of the following seems most likely?
A) the 20% stock is a better investment. B) Both stocks are priced correctly given their perceived risk. C) the 14% stock is overpriced. D) Both stocks will have approximately the same return.