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?