A company has an authorized capital of 10,000 common shares of $10 par value and 7,500 common shares are outstanding. During the year, the company issued 1,000 common shares of $10 par value at $15 per share. A journal entry is recorded to debit the Cash account by $15,000. Show the credit side of the journal entry? a. Credit Common stock account for $15,000 b. Credit Common stock account for $10,000 and Paid-in capital in-excess of Stated value account for $5,000 c. Credit Common stock account for $10,000 and Retained earnings account for $5,000 d. Credit Common stock account for $10,000 and Paid-in capital in-excess of Par value account for $5,000

A company has an authorized capital of 10,000 common shares of $10 par value and 7,500 common shares are outstanding. During the year, the company issued 1,000 common shares of $10 par value at $15 per share. A journal entry is recorded to debit the Cash account by $15,000. Show the credit side of the journal entry? a. Credit Common stock account for $15,000 b. Credit Common stock account for $10,000 and Paid-in capital in-excess of Stated value account for $5,000 c. Credit Common stock account for $10,000 and Retained earnings account for $5,000 d. Credit Common stock account for $10,000 and Paid-in capital in-excess of Par value account for $5,000

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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