Kayway Inc. issues 1000 common shares for $2 each. The current market value of Kayway's preferred shares is $7 per share. The average cost of Kayway's common shares is $1.50 per share. In this transaction, Kayway should: 1. None of the answers are correct 2. Debit Common Shares by $2000 3. Credit Common Shares by $2000 4. Credit Common Shares by $1500 5. Credit Common Shares by $7000
Kayway Inc. issues 1000 common shares for $2 each. The current market value of Kayway's preferred shares is $7 per share. The average cost of Kayway's common shares is $1.50 per share. In this transaction, Kayway should: 1. None of the answers are correct 2. Debit Common Shares by $2000 3. Credit Common Shares by $2000 4. Credit Common Shares by $1500 5. Credit Common Shares by $7000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(Multiple Choice)
Kayway Inc. issues 1000 common shares for $2 each. The current market value of Kayway's preferred shares is $7 per share. The average cost of Kayway's common shares is $1.50 per share. In this transaction, Kayway should:
1. None of the answers are correct
2. Debit Common Shares by $2000
3. Credit Common Shares by $2000
4. Credit Common Shares by $1500
5. Credit Common Shares by $7000
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