Paltrowski Company issued 1 million shares of no- par common stock with a stated value of $5. The issue price was $50 per share. Which journal entry is prepared? O A. debit Cash $50 million and credit Common Stock $50 million B. debit Cash $50 million, credit Common Stock $5 million and credit Paid- in Capital in Excess of Stated Value-Common $45 million OC. debit Cash $50 million and credit Retained Earnings $50 million OD. debit Cash $50 million, credit Common Stock $5 million and credit Paid - in Capital in Excess of Par-Common $45 million
Paltrowski Company issued 1 million shares of no- par common stock with a stated value of $5. The issue price was $50 per share. Which journal entry is prepared? O A. debit Cash $50 million and credit Common Stock $50 million B. debit Cash $50 million, credit Common Stock $5 million and credit Paid- in Capital in Excess of Stated Value-Common $45 million OC. debit Cash $50 million and credit Retained Earnings $50 million OD. debit Cash $50 million, credit Common Stock $5 million and credit Paid - in Capital in Excess of Par-Common $45 million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Paltrowski Company issued 1 million shares of no - par common stock with a stated value of $5. The issue price was $50 per share. Which journal entry is prepared?
O A. debit Cash $50 million and credit Common Stock $50 million
O B. debit Cash $50 million, credit Common Stock $5 million and credit Paid - in Capital in Excess of Stated Value-Common $45 million
O C. debit Cash $50 million and credit Retained Earnings $50 million
O D. debit Cash $50 million, credit Common Stock $5 million and credit Paid - in Capital in Excess of Par-Common $45 million
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