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2-Olaf Inc. received a check from its underwriters for $83 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $83 per share. Which is the correct entry to record the issue of the stock? O dr. Cash $83,000,000; cr. Common stock $83,000,000. O. © dr. Cash $83,000,000; cr. Deferred stock issue revenue $38,000,000; cr. Common stock $5,000,000; cr. Paid-in capital-excess of par $40,000,000. O None of the options listed. O. © dr. Cash $83,000,000; cr. Common stock $5,000,000; cr. Paid-in capital-excess of par $78,000,000. O. © dr. Cash $83,000,000; cr. Stock issue expense $38,000,000; cr. Stock contract receivable $45,000,000

2-Olaf Inc. received a check from its underwriters for $83 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $83 per share. Which is the correct entry to record the issue of the stock? O dr. Cash $83,000,000; cr. Common stock $83,000,000. O. © dr. Cash $83,000,000; cr. Deferred stock issue revenue $38,000,000; cr. Common stock $5,000,000; cr. Paid-in capital-excess of par $40,000,000. O None of the options listed. O. © dr. Cash $83,000,000; cr. Common stock $5,000,000; cr. Paid-in capital-excess of par $78,000,000. O. © dr. Cash $83,000,000; cr. Stock issue expense $38,000,000; cr. Stock contract receivable $45,000,000

FINANCIAL ACCOUNTING
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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2-Olaf Inc. received a check from its underwriters for $83 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $83 per share.

Which is the correct entry to record the issue of the stock?

O dr. Cash $83,000,000; cr. Common stock $83,000,000.

O. © dr. Cash $83,000,000; cr. Deferred stock issue revenue $38,000,000; cr. Common stock

$5,000,000; cr. Paid-in capital-excess of par $40,000,000.

O None of the options listed.

O. © dr. Cash $83,000,000; cr. Common stock $5,000,000; cr. Paid-in capital-excess of par

$78,000,000.

O. © dr. Cash $83,000,000; cr. Stock issue expense $38,000,000; cr. Stock contract receivable $45,000,000.

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