Question

On 11/16/2019, Out to Get You, Inc. issued 11,000 shares of $0.10 par value common stock for $5 per share. The journal entry to record this issuance would include:

	a.	A debit to Cash for $55,000.
	b.	A credit to Common Stock for $53,900.
	c.	A credit to Additional Paid-in Capital for $55,000.
	d.	A credit to Common Stock for $55,000.
	e.	A credit to Additional Paid-in Capital for $1,100.

Answer 1

The complete journal entry would be as follows.
Date	Account Title	Debit	Credit
	Cash (11000*$5)	$       55,000
	Common stoc (11000*0.10)		$         1,100
	Additional Paid-in Capital		$       53,900
	( to record issuance of common stock)
	Correct Option : a. A debit to Cash for $55,000.