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A Corporation has ordinary shares with P10 par value. A hew share of this stock is isued for P13 to an investor. Which of the following is correct? 1. The entity will debit ordinary shares for the par valu of P10 2. The entity will debit cash for P13 and credit gain on sale of stock for P3 if the purchaser of the stock wa already a shareholder and is simply buying addition shares. A 1 only

A Corporation has ordinary shares with P10 par value. A hew share of this stock is isued for P13 to an investor. Which of the following is correct? 1. The entity will debit ordinary shares for the par valu of P10 2. The entity will debit cash for P13 and credit gain on sale of stock for P3 if the purchaser of the stock wa already a shareholder and is simply buying addition shares. A 1 only

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A Corporation has ordinary shares with P10 par value. A new share of this stock is issued for P13 to an investor. Which of the following is correct? 1. The entity will debit ordinary shares for the par value of P10 2. The entity will debit cash for P13 and credit gain on sale of stock for P3 if the purchaser of the stock was already a shareholder and is simply buying additional shares. A 1 only B) 2 only C) both 1 and 2 D) neither 1 and 2
Transcribed Image Text:A Corporation has ordinary shares with P10 par value. A new share of this stock is issued for P13 to an investor. Which of the following is correct? 1. The entity will debit ordinary shares for the par value of P10 2. The entity will debit cash for P13 and credit gain on sale of stock for P3 if the purchaser of the stock was already a shareholder and is simply buying additional shares. A 1 only B) 2 only C) both 1 and 2 D) neither 1 and 2
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