When Wisconsin Corporation was formed on January 1, the corporate charter provided for 115,800 shares of $15 par value common stock. During its first month of operation, the corporation issued 7,940 shares of stock at a price of $25 per share. The journal entry for this transaction would include a a.credit to Common Stock for $198,500 b.debit to Cash for $119,100 c.credit to Paid-In Capital in Excess of Par—Common Stock for $79,400 d.debit to Common Stock for $115,800

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 9EB: Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction...
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When Wisconsin Corporation was formed on January 1, the corporate charter provided for 115,800 shares of $15 par value common stock. During its first month of operation, the corporation issued 7,940 shares of stock at a price of $25 per share.

The journal entry for this transaction would include a

a.credit to Common Stock for $198,500
b.debit to Cash for $119,100
c.credit to Paid-In Capital in Excess of Par—Common Stock for $79,400
d.debit to Common Stock for $115,800
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