Question

Yuma Corporation issued 25,000 shares of $20 stated-value common stock for $24 per share. Which of...

Yuma Corporation issued 25,000 shares of $20 stated-value common stock for $24 per share.

Which of the following statements is true?


The Cash account will increase by $500,000.

The Paid-in Capital in Excess of Stated Value account will increase by $100,000.

The Stock Payable account will increase by $600,000.

The Common Stock account will increase by $600,000.

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Answer #1

Option B

The entry would be

Cash (25,000*24) 600,000
Common stock (25,000*20) 500,000
Paid in capital in excess of stated value 100,000
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