A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transaction would be:
A. Debit Common Stock $27,500; credit Cash $27,500.
B. Debit Cash $27,500; credit Common Stock $27,500.
C. Debit Treasury Stock $2,500; debit Paid-in Capital in Excess of Par Value, Treasury Stock $25,000; credit Common Stock $27,500.
D. Debit Cash $27,500; credit Paid-in Capital in Excess of Par Value, Common Stock $2,500; credit Common Stock $25,000.
E. Debit Treasury Stock $27,500; credit Cash $27,500.
Answer: B
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The accountant for Ella Company made the following errors related to the inventory in 2016: 1. The beginning inventory for 2016 was understated by $1,350 due to an error in the physical count. 2. A $1,500 purchase of merchandise in transit was not recorded as a purchase and was not included in ending inventory. ? Assuming a periodic inventory system, Ella Company's 2016 net income will be
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