a-company-issues-500-shares-of-2-par-value-stock-at-2-per-share-what-is-the-corr

Question

A company issues 500 shares of $2 par value stock at $2 per share. What is the correct journal entry?

Accepted Answer

Debit Cash $1,000; Credit Common Stock $1,000

Answer

Debit Cash $1,000; Credit Common Stock $500; Credit APIC $500

Answer

Debit Cash $500; Credit Common Stock $500

Answer

Debit Common Stock $1,000; Credit Cash $1,000

A company issues 500 shares of \$2 par value stock at \$2 per share. What is the correct journal entry?