Question

Washington corporation issued 4,000 shares of its $20 par value common stock for $23 per share. the entry to record the issuance would include a

a. debit to cash for $80,000.
b. credit to common stock for $12,000.
c. credit to common stock for $80,000.
d. debit to paid-in capital in excess of par value for $12,000.

Answer 1

The answer is C.credit to common stock for $80,000

Answer 2

The answer is option C, that is credit to common stock for $80,000
Washington corporation issued = 4,000 shares
For par value = $20
Common stock for = $23 per share
Credit to common stack = amount par value x number of shares = $20 x 4,000 shares = $80,000
So, the entry to record the issuance include a credit to common stock for $80,000