QUESTION 17 A company issued 8,000 shares of $20 par value common stock for $200
ID: 2591620 • Letter: Q
Question
QUESTION 17 A company issued 8,000 shares of $20 par value common stock for $200,000. What would the journal entry be to record this sale? OA. Debit Cash $200,000, credit Capital Stock-Common $160,000; credit Retained Earnings $40,000 O B. Credit Cash $200,000; debit Capital Stock Common $160,000; debit Paid-In Capital in Excess of Par Value $40,000 OC. Debit Cash $200,000; credit Capital Stock-Common $160,000; credit Paid-In Capital in Excess of Par Value $40,000 OD.Debit Cash $200,000; credit Capital Stock-Common $200,000Explanation / Answer
Journal Entry:
Cash a/c Dr $ 200000
To Capital stock common $ 160000
8000 shares * $ 20 par value
To Retained earnings $ 40000
( Being 8000shares are issued )
Hence the answer is - " A "