ABC issued 10,000 shares of stock for $20/share.   The stock has a par value of $5.   The journal entry would include: Group of answer choices A 200,000 credit to common stock A 200,000 debit to common stock A 50,000 debit to common stock. A 50,000 credit to common stock

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ABC issued 10,000 shares of stock for $20/share.   The stock has a par value of $5.   The journal entry would include:
Group of answer choices
A 200,000 credit to common stock
A 200,000 debit to common stock
A 50,000 debit to common stock.
A 50,000 credit to common stock
 
Expert Solution
Step 1

When common stock issue more than it's par value then it is common share issued at premium. 

Journal entry will be 

Cash a/c dr. 

      To common stock 

      To paid in capital in excess of par value

 

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