On January 2, Year 1, Torres Corporation issued 25,000 shares of $20 par-value common stock for $25 per share. Which of the following statements is true? Multiple Choice The Common Stock account will increase by $625,000. The Cash account will increase by $500,000. Total stockholders' equity will increase by $500,000. The Paid-in Capital in Excess of Par Value account will increase by $125,000.
On January 2, Year 1, Torres Corporation issued 25,000 shares of $20 par-value common stock for $25 per share. Which of the following statements is true? Multiple Choice The Common Stock account will increase by $625,000. The Cash account will increase by $500,000. Total stockholders' equity will increase by $500,000. The Paid-in Capital in Excess of Par Value account will increase by $125,000.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting...
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![On January 2, Year 1, Torres Corporation issued 25,000 shares of $20 par-value common stock for $25 per share. Which of the following statements is true?
Multiple Choice
The Common Stock account will increase by $625,000.
The Cash account will increase by $500,000.
Total stockholders' equity will increase by $500,000.
The Paid-in Capital in Excess of Par Value account will increase by $125,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1aedfbc5-373d-40de-a51d-af192ec8e8d0%2Fe127f8c8-2e42-4cf2-8767-9994cfc635ba%2Fnimc2b7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 2, Year 1, Torres Corporation issued 25,000 shares of $20 par-value common stock for $25 per share. Which of the following statements is true?
Multiple Choice
The Common Stock account will increase by $625,000.
The Cash account will increase by $500,000.
Total stockholders' equity will increase by $500,000.
The Paid-in Capital in Excess of Par Value account will increase by $125,000.
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