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Post Inc. issued 50,000 shares of common stock, $1 par, for cash of $18 per share on January 1, 2020. Post Inc. also incurred $10,000 in stock issue costs, paid in cash. The entry to record the issuance would include Select one: a. A credit to Paid - in Capital in Excess of Par-Common Stock for $850,000. b. A credit to Paid - in Capital in Excess of Par-Common Stock for $840,000. C. A debit to Stock Issuance Costs for $10,000. d. A debit to Stock Issuance Expense for $10,000.

Post Inc. issued 50,000 shares of common stock, $1 par, for cash of $18 per share on January 1, 2020. Post Inc. also incurred $10,000 in stock issue costs, paid in cash. The entry to record the issuance would include Select one: a. A credit to Paid - in Capital in Excess of Par-Common Stock for $850,000. b. A credit to Paid - in Capital in Excess of Par-Common Stock for $840,000. C. A debit to Stock Issuance Costs for $10,000. d. A debit to Stock Issuance Expense for $10,000.

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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Post Inc. issued 50,000 shares of common stock, $1 par, for cash of $18 per share on January 1, 2020. Post Inc. also incurred $10,000 in stock issue costs, paid in cash. The entry to record the issuance would include Select one: a. A credit to Paid - in Capital in Excess of Par-Common Stock for $850,000. b. A credit to Paid - in Capital in Excess of Par-Common Stock for $840,000. C. A debit to Stock Issuance Costs for $10,000. d. A debit to Stock Issuance Expense for $10,000.
Transcribed Image Text:Post Inc. issued 50,000 shares of common stock, $1 par, for cash of $18 per share on January 1, 2020. Post Inc. also incurred $10,000 in stock issue costs, paid in cash. The entry to record the issuance would include Select one: a. A credit to Paid - in Capital in Excess of Par-Common Stock for $850,000. b. A credit to Paid - in Capital in Excess of Par-Common Stock for $840,000. C. A debit to Stock Issuance Costs for $10,000. d. A debit to Stock Issuance Expense for $10,000.
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