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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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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