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If a Company Issues 10,000 Shares of $6 Par Value

Question 1

Multiple Choice

If a company issues 10,000 shares of $6 par value common stock at a market price of $90 per share, which of the following is the correct balance sheet entry?


A) Increase cash by $900,000 and increase paid-in capital by $900,000
B) Increase cash by $900,000 and increase retained earnings by $900,000
C) Increase revenues by $900,000
D) Increase common stock and cash by $60,000

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