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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 account that should be recorded in the Description column of the Journal item (1) as the debit account for the $300,000 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 Paid-In Capital in Excess Par - Common Stock Treasury Stock Cash

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 account that should be recorded in the Description column of the Journal item (1) as the debit account for the $300,000 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 Paid-In Capital in Excess Par - Common Stock Treasury Stock Cash

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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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 account that should be recorded in the Description column of the Journal item (1) as the debit account for the $300,000 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
Paid-In Capital in Excess Par - Common Stock
Treasury Stock
Cash
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