Bentley Corporation received cash from issuing 11,000 shares of common stock at par on January 1, 2024. The stock has a par value of $0.05 per share. Which is the correct journal entry to record this transaction? O Cash is credited for $11,000 and Common Stock-$0.05 Par Value is debited for $11,000. O Cash is debited for $11,000, Common Stock-$0.05 Par Value is credited for $550, and Paid-In Capital in Excess of Par-Common credited for $10,450. O Cash is debited for $550, and Common Stock-$0.05 Par Value is credited for $550. O Paid-In Capital in Excess of Par-Common is debited for $10,450, and Common Stock-$0.05 Par Value is credited for $10,450.
Bentley Corporation received cash from issuing 11,000 shares of common stock at par on January 1, 2024. The stock has a par value of $0.05 per share. Which is the correct journal entry to record this transaction? O Cash is credited for $11,000 and Common Stock-$0.05 Par Value is debited for $11,000. O Cash is debited for $11,000, Common Stock-$0.05 Par Value is credited for $550, and Paid-In Capital in Excess of Par-Common credited for $10,450. O Cash is debited for $550, and Common Stock-$0.05 Par Value is credited for $550. O Paid-In Capital in Excess of Par-Common is debited for $10,450, and Common Stock-$0.05 Par Value is credited for $10,450.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Bentley Corporation received cash from issuing 11,000 shares of common stock at par on January 1, 2024. The stock has a par value of $0.05
per share. Which is the correct journal entry to record this transaction?
Cash is credited for $11,000 and Common Stock-$0.05 Par Value is debited for $11,000.
Cash is debited for $11,000, Common Stock-$0.05 Par Value is credited for $550, and Paid-In Capital in Excess of Par-Common credited for
$10,450.
Cash is debited for $550, and Common Stock-$0.05 Par Value is credited for $550.
Paid-In Capital in Excess of Par-Common is debited for $10,450, and Common Stock-$0.05 Par Value is credited for $10,450.
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