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…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 3CE: Prepare general journal entries for the following transactions of GOTE Company: (a) Received...

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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 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

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