Issuer Co. has 100,000 authorized shares of $20 par common stock and 20,000 outs

Question

Issuer Co. has 100,000 authorized shares of $20 par common stock and 20,000 outstanding. On March 31 of the current year, Imelda subscribed to 10,000 shares at a price of $25 per share. She paid 50% of the price on that date and the remainder on April 30. Issuer should

A) Credit additional paid-in capital on April 30.

B) Credit additional paid-in capital on March 31.

C) Debit additional paid-in capital on March 31.

D) Debit additional paid-in capital on April 30.

Issuer Co. has 100,000 authorized shares of $20 par common stock and 20,000 outstanding. On March 31 of the current year, Imelda subscribed to 10,000 shares at a price of $25 per share. She paid 50% of the price on that date and the remainder on April 30. Issuer should

A) Credit additional paid-in capital on April 30.

B) Credit additional paid-in capital on March 31.

C) Debit additional paid-in capital on March 31.

D) Debit additional paid-in capital on April 30.

Explanation / Answer

Answer is B

Additonal paid in capital are credited when the allotment made therefore answer is B

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.