under-gaap-a-company-issues-10000-shares-at-10-each-with-a-par-value-of-1-how-sh

Question

Under GAAP, a company issues 10,000 shares at $10 each with a par value of $1. How should this transaction be recorded?

Accepted Answer

Credit common stock $10,000 and additional paid-in capital $90,000.

Answer

Credit common stock $10,000 and retained earnings $90,000.

Answer

Credit additional paid-in capital $100,000.

Answer

Credit common stock $100,000.

Under GAAP, a company issues 10,000 shares at \$10 each with a par value of \$1. How should this transaction be recorded?