Paltrowski Company issued 1 million shares of no- par common stock with a stated value of $5. The issue price was $50 per share. Which journal entry is prepared? O A. debit Cash $50 million and credit Common Stock $50 million B. debit Cash $50 million, credit Common Stock $5 million and credit Paid- in Capital in Excess of Stated Value-Common $45 million OC. debit Cash $50 million and credit Retained Earnings $50 million OD. debit Cash $50 million, credit Common Stock $5 million and credit Paid - in Capital in Excess of Par-Common $45 million

Paltrowski Company issued 1 million shares of no- par common stock with a stated value of $5. The issue price was $50 per share. Which journal entry is prepared? O A. debit Cash $50 million and credit Common Stock $50 million B. debit Cash $50 million, credit Common Stock $5 million and credit Paid- in Capital in Excess of Stated Value-Common $45 million OC. debit Cash $50 million and credit Retained Earnings $50 million OD. debit Cash $50 million, credit Common Stock $5 million and credit Paid - in Capital in Excess of Par-Common $45 million

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 10MC: A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the...

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A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the transaction would include which of the following? A. debit of $4,000 to common stock B. credit of $20,000 to common stock C. credit of $40 to common stock D. debit of $20,000 to common stock
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