2 points Question 43 Ramnecues 10 shares of nopar common sto

2 points Question 43 Ramnecues 10 shares of no-par common stock for $15 per share. Which of the following the joumal entry properly records the 150 Common St0ck Gain on the Sale of Stock 140 10 150 8 Cash Common stock 150 Cash Common Stock 10 150 Common stock 150

Solution

Question no:43 Answer is option (B) debit: Cash A/c   $150 and credit: Common stock $150 in the Above data, the Question does not provide any stated value of common Stock then we have to record the journal entry with no Par value and With No stated value. Date Accounts & Explanation debit Credit Cash A/c $150         To Common Stock A/c $150 (Being Journal Entry recorded for issue of stock with no par and No stated value) Question no:50 Answer is option: (C )   Debit : Interest Expenses A/c $3000. Credit: Interest payable A/c $3000 Interest expense for the 3 Months =$200,000*6%*3/12 =$3000 Adjusting Entry for Interest on Note payable Date Accounts & Explanation Debit Credit Mar-30 Interest Expense A/c $3000             To Interest payable A/c $3000 (Being Adjusting enrty for interest on Note payable has been recorded