Question

The journal entry on June 20 includes ________.

1) Debit to Cash and Credit to Common Stock for $21,000
2) Debit to Cash and Credit to Common Stock for $42,000
3) Debit to Cash and Credit to Common Stock for $63,000
4) Debit to Cash and Credit to Common Stock for $84,000

Answer 1

To determine the correct journal entry for the issuance of Common Stock, specific transaction details like the number of shares and issue price per share are necessary.

Step-by-step explanation:

The student is asking for the correct journal entry on June 20 that includes a debit to Cash and a credit to Common Stock. However, without additional information provided about the specific transaction amounts, we cannot accurately determine which of the options (1) $21,000, (2) $42,000, (3) $63,000, or (4) $84,000 is correct. Accounting entries related to stock transactions reflect the amount of cash received by the company and the equivalent value assigned to the Common Stock when the stock is issued. To answer such a question correctly, information such as the number of shares issued and the price per share is required.