Question
Asked Dec 20, 2019
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A corporation issues 4,500 shares of common stock for $144,000. The stock has a stated value of $19 per share. What
amount of credit to Common Stock would the journal entry to record the stock issuance include?
Select the correct answer.
$85,500
$144,000
$4,500
$58,500
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E Calculator A corporation issues 4,500 shares of common stock for $144,000. The stock has a stated value of $19 per share. What amount of credit to Common Stock would the journal entry to record the stock issuance include? Select the correct answer. $85,500 $144,000 $4,500 $58,500

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Expert Answer

Step 1

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Step 2

Journal entry:

...
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Account title and explanation Cash Common stock (4,500 shares×$19) Additional paid-in capital Debit (S) Credit ($) 144,000 Date 85,500 58,500

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