You are logged Introduction to Accounting ||(1) + Back to course "Introduction to Accounting 1 (1) Quiz nav Question 7 Not yet Al-Mrooj Co

Accounting Nov 05, 2020

You are logged Introduction to Accounting ||(1) + Back to course "Introduction to Accounting 1 (1) Quiz nav Question 7 Not yet Al-Mrooj Co. issued 5,000 shares of OMR 4 par value common stock in exchange for machine with market value OMR 24,000. the issuance journal entry would be answered 10 Murid out of Flag question Finish atted Select one: a. Dr. Machine 24,000 Cr. Common Stock 5,000 PIC in excess of par 19,000 Time left @b Dr. Machine 24,000 Cr. Common Stock 20,000 PIC in excess of par 4,000 C Dr. Cash 24,000 Cr. Common Stock 20,000 PIC in excess of par 4,000 d. 20,000 Dr. Cash Cr. Common Stock 20,000 HOM OP tv

Expert Solution

option b is correct.

the machine will be debited with market value (24000)and common stock will be credited to the extent of par value (5000×4)... And excess of par value will be credited as 4000

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