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Asked Nov 5, 2019
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Q. question 1

South Beach Apparel issued 15,000 shares of $2 par value stock for $10 per share. What is true about the journal entry to record the issuance?
Multiple Choice
Credit Common Stock $150,000
Debit Common Stock $30,000
Credit Additional Paid-In Capital $120,000
Credit Cash $150,000
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South Beach Apparel issued 15,000 shares of $2 par value stock for $10 per share. What is true about the journal entry to record the issuance? Multiple Choice Credit Common Stock $150,000 Debit Common Stock $30,000 Credit Additional Paid-In Capital $120,000 Credit Cash $150,000

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Expert Answer

Step 1

Paid-in capital in excess of par value: This is the total of stock capital contributed by investors in excess of par value, and so, sometimes referred to as paid-in capital in excess of par value. It includes preferred stock capital issued in excess of par value, common stock capital issued in excess of par value, and capital issued by the way of sale of treasury stock.

Step 2

Choose the correct option for the given situation:

In this case, the additional paid i...

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