Shell product decided to raiseadditional financing by issuingcommon stock. The companyreceived OMR6400 in exchange forOMR 1500 shares of OMR 1 parvalue common stock. By whatamount should the additional paid-incapital account increase as a resultof this transaction?Select one:a. OMR7900O b. None of the optionsc. OMR3000O d. OMR4900 Small Corp. repurchases shares froma shareholder for OMR3000.Threemonths later, the shareholder buysthe same shares back at OMR3200.As a result of this transactionAdditional paid in capital should be:Select one:a. Debt by OMR200O b. Debt by 1500c. Credit by OMR200O d. Credit by 4500

The answers for the multiple choice questions and relevant explanation are presented hereunder :…

Shell product decided to raise additional financing by issuing common stock. The company received OMR6400 in exchange for OMR 1500 shares of OMR 1 par value common stock. By what amount should the additional paid-in capital account increase as a result of this transaction?

Shell product decided to raise additional financing by issuing common stock. The company received OMR6400 in exchange for OMR 1500 shares of OMR 1 par value common stock. By what amount should the additional paid-in capital account increase as a result of this transaction?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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