Question

Multiple Choice Question 102Katy Hooper Inc. issued 6,000 shares of no-par common stock with a stated value of $5 per share. The market price of the stock on the date of issuance was $14 per share. The entry to record this transaction includes a

Answer 1

Answer and Explanation:

The journal entry to record the given transaction is as follows;

Cash (6,000 shares × $14) $84,000

To common stock (6,000 shares × $5) $30,000

To Additional paid in capital $54,000

(Being the issuance of the shares is recorded)

here cash is debited as it increased the assets and credited the common stock and additional paid in capital as it also increased the assets