Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the accounts that should be recorded in the Description column of the Journal item (2) as the credit accounts and for what amounts assuming that Sunshine Corp. received cash for the issuance of 10,000 shares of common stock at $30.JOURNAL DateDescriptionP.RefDEBITCREDITJan. 1(1) $300,000 (2) ? (2) ? Group of answer choicesCommon Stock credit of $300,000 and Cash credit of $50,000Treasury Stock credit of $250,000 and Cash credit of $50,000Common Stock credit of $250,000 and Paid-In Capital in Excess Par - Common Stock credit of $50,000Common Stock credit of $300,000 and Treasury Stock credit of $50,000

The shares issued at the higher amount as compared to par value are the shares issued at premium.…

Answered: Sunshine Corp. was organized on Jan. 1…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the accounts that should be recorded in the Description column of the Journal item (2) as the credit accounts and for what amounts assuming that Sunshine Corp. received cash for the issuance of 10,000 shares of common stock at $30.

JOURNAL

Date	Description	P.Ref	DEBIT	CREDIT
Jan. 1	(1)		$300,000
	(2)			?
	(2)			?

Group of answer choices

Common Stock credit of $300,000 and Cash credit of $50,000

Treasury Stock credit of $250,000 and Cash credit of $50,000

Common Stock credit of $250,000 and Paid-In Capital in Excess Par - Common Stock credit of $50,000

Common Stock credit of $300,000 and Treasury Stock credit of $50,000

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions