On January 2, 2013, Terra Corporation issued 20,000 shares of $20 par-value common stock for $22 per share. Which of the following statements is true?

Question

Quizplus · Accepted Answer

The cash account will increase by $440,000 (20,000 x $22), the common stock account will increase by $400,000 (20,000 x $20 par value), and the paid-in capital in excess of par value account will increase by $40,000 (20,0000 x $2).

On January 2, 2013, Terra Corporation Issued 20,000 Shares of $20