Question

The journal entry to issue 1,000,000 shares of $5 par common stock for $9 per share...

The journal entry to issue 1,000,000 shares of $5 par common stock for $9 per share on July 2 would be

a.

July 2

Cash9,000,000

Common Stock9,000,000

b.

July 2

Cash5,000,000

Common Stock5,000,000

c.

July 2

Cash5,000,000

Paid-In Capital in Excess of Par—Common Stock4,000,000

Common Stock9,000,000

d.

July 2

Cash9,000,000

Common Stock5,000,000

Paid-In Capital in Excess of Par—Common Stock4,000,000

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Answer #1

Answer: d. July 2 Cash9,000,000 Common Stock5,000,000 Paid-In Capital in Excess of Par—Common Stock4,000,000 Working Notes: C

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