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    Journalizing Stock Transactions

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    Journal entry to issue 100,000 shares of $5 par common stock for $7.00 per share on March 2nd would be
    a) Cash 700,000
    Common stock 500,000
    Paid in capital in excess of par-c/s 200,000

    b) Cash 500,000
    Common Stock 500,000

    c) Cash 500,000
    paid in capital in excess of par-c/s 200,000
    Common stock 500,000

    d) Cash 100,000
    Common stock 100,000

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    Solution Preview


    The correct answer is:

    a) Cash 700,000
    Common stock ...

    Solution Summary

    The solution shows the correct choice in a multiple choice question about journalizing the issuance of stock above par value with an explanation.