A company issues 1 million shares of common stock with a par value of $0.02 for $15 a share. The entry to record this transaction includes a debit to Cash for: A. $15,000,000 and a credit to Common Stock for $15,000,000. B. $20,000, a debit to Capital Receivable for $14,980,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000. C. $15,000,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000. D. $20,000 and a credit to Common Stock for $20,000.

Question

04-08-2021
Business

Answered

Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

A company issues 1 million shares of common stock with a par value of $0.02 for $15 a share. The entry to record this transaction includes a debit to Cash for: A. $15,000,000 and a credit to Common Stock for $15,000,000. B. $20,000, a debit to Capital Receivable for $14,980,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000. C. $15,000,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000. D. $20,000 and a credit to Common Stock for $20,000.

Sagot :

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.

obj. 2 dexter industries purchased packaging equipment on january 8 for $72,000. the equipment was expected to have a useful life of three years, or 18,000 oper

Describe the causes and effects of ocean waves and tides

Lulu bought 2 blouses for $24 each and 3 pairs of socks for $7 each, tax included. how much change would she receive if she paid with bills totaling $80?

Which part of the diagram refers to "one event that begins the main conflict in the story"?

A train journey from Paris to Amsterdam took 3 hours 24 minutes. The total distance the train travelled was 433.5 km. Im Work out the average speed of the train

Help asap please you will make my day

The principle of federalism embodied in the United States Constitution had most in common with which of the following earlier aspects of British colonial govern

how to write a letter of appication in English

phân biệt cán bộ công chức viên chức

I Select the correct navigational path Click the | to edit the name of a cell range using Name Manager. Select v tab on the ribbon to enter the Defined Names ga

anthougo anthougo · Answer 1 · 2021-08-11T12:32:07-04:00

The entry to record this transaction includes a debit to Cash for C. $15,000,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000.

For the cash received, the entry to record the transaction, Cash account is debited with $15,000,000 (1,000,000 x $15).

The Common Stock account is credited with $20,000 (1,000,000 x $0.02) to record the common stock value of the transaction.

And the Additional Paid-in Capital is credited with $14,980,000 (1,000,000 x $14.98) to record the additional capital contributed above the par value.

The $14.98 is the difference between the issue price ($15) per share and the par value ($0.02) per share.

The par value is the nominal amount that each share is issued.

Learn more about recording the issue of shares here: https://brainly.com/question/16378490

Sagot :

Other Questions