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T/F alma corp. issues 1,000 shares of $10 par common stock at $14 per share. when the transaction is journalized, credit(s) are made to

Sagot :

Cash is debited for increasing assets and credited for increasing stockholder equity by crediting common stock and paid-in capital.

Given,

Alma corp. issues 1,000 shares of $10 par common stock at $14 per share.

We have to find the credits made to when the transaction is journalized;

The journal entry is displayed below;

Cash; 1,000 shares at $14 = 1000 × 14 = $14,000

To Common Stock ; 1,000 shares at $10 = 1000 × 10 = 10,000

To Paid in capital in excess of par value; 3,000 shares at $4 = 14,000 - 10,000 = 4,000

Being documented as the common stock's issue

Here, cash is debited because it increased assets and credited because it increased stockholder equity by purchasing common shares and paying for capital.

Learn more about common stock here;

https://brainly.com/question/24215333

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