Issuing Par Value Stock Video Lessons

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Problem: A corporation issued for cash 100,000 shares of its $0.01 par value common stock for $450,000. Which of the following is the correct journal entry to record this transaction? a. Cash, debit, $450,000; Common Stock, credit, $450,000 b. Cash, debit, $450,000; Common Stock, credit, $45,000; Paid-in Capital, credit, $405,000 c. Cash, debit, $450,000; Common Stock, credit, $1,000; Paid-in Capital, credit, $449,000 d. Cash, debit, $450,000; Paid-in Capital, credit, $450,000

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Problem Details

A corporation issued for cash 100,000 shares of its $0.01 par value common stock for $450,000. Which of the following is the correct journal entry to record this transaction?

a. Cash, debit, $450,000; Common Stock, credit, $450,000

b. Cash, debit, $450,000; Common Stock, credit, $45,000; Paid-in Capital, credit, $405,000

c. Cash, debit, $450,000; Common Stock, credit, $1,000; Paid-in Capital, credit, $449,000

d. Cash, debit, $450,000; Paid-in Capital, credit, $450,000

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