A company issues 1,000 shares of \$5 par value stock at \$5 per share. What is the correct journal entry?

• A. Debit Common Stock \$5,000; Credit Cash \$5,000
• B. Debit Cash \$1,000; Credit Common Stock \$1,000
• C. Debit Cash \$5,000; Credit Common Stock \$1,000; Credit APIC \$4,000
• D. Debit Cash \$5,000; Credit Common Stock \$5,000

Answer: (D)