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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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