Multiple Choice
A public company issues 10,000 shares on November 1 to purchase equipment with a value of $72,000. Assume the company's shares are actively traded with a value of $7 per share. Which statement is true?
A) Equipment is debited for $72,000.
B) Contributed Surplus is credited for $2,000.
C) A gain on sale is credited for $2,000.
D) Common Shares is credited for $70,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Retained earnings are the cumulative profit less
Q9: When convertible preferred shares are converted into
Q10: Income tax expense is calculated based on
Q11: List two advantages that the corporate form
Q12: All of the following items are characteristics
Q13: Preferred shares are least likely to have
Q14: Dividends paid on common shares are shown
Q15: Record journal entries for each of the
Q17: When shares are issued for noncash assets,
Q18: The redemption or call features applies to