A company issued 60 shares of $100 par value common stock for $7,900 cash. The journal entry to record the issuance is:Multiple Choice Debit Cash $7,900; credit Common Stock $7,900. Debit Investment in Common Stock $7,900; credit Cash $7,900. Debit Cash $7,900; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,900. Debit Common Stock $6,000, debit Investment in Common Stock $1,900; credit Cash $7,900. Debit Cash $7,900; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,900.

Journal entry is the recording of financial transactions by using the dual entity concept in which…

Answered: A company issued 60 shares of $100 par…

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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A company issued 60 shares of $100 par value common stock for $7,900 cash. The journal entry to record the issuance is:

Multiple Choice

Debit Cash $7,900; credit Common Stock $7,900.
Debit Investment in Common Stock $7,900; credit Cash $7,900.
Debit Cash $7,900; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,900.
Debit Common Stock $6,000, debit Investment in Common Stock $1,900; credit Cash $7,900.
Debit Cash $7,900; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,900.

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