A company issues \$10,000 in common stock. How would this transaction be recorded in the journal entries?

• A. Debit Retained Earnings \$10,000; Credit Common Stock \$10,000
• B. Debit Cash \$10,000; Credit Retained Earnings \$10,000
• C. Debit Cash \$10,000; Credit Common Stock \$10,000
• D. Debit Common Stock \$10,000; Credit Cash \$10,000

Answer: (C)