A corporation sold 14,000 $10 par value ordinary shares at a cash price of $13 per share. The entry to record this transaction would include:

Question

Quizplus · Accepted Answer

The sale of ordinary shares at a cash price of $13 per share would result in a credit to Share Capital-Ordinary for the total amount of shares sold, which is $140,000 (14,000 x $10). Therefore, the correct entry would be a credit to Share Capital-Ordinary for $140,000. The Share Premium-Ordinary account would only be used if the shares were sold at a price higher than their par value, which is not the case in this scenario.

A Corporation Sold 14,000 $10 Par Value Ordinary Shares at a Cash