A company sells 1 million shares of stock with no par value for $15 a share. In

Question

A company sells 1 million shares of stock with no par value for $15 a share. In recording the transaction, it would:
a. debit Cash for $20,000 and credit Common Stock for $20,000.
b. debit Cash for $15 million and credit Common Stock for $15 million
c. debit Cash for $15 million, credit Common Stock for $20,000 and credit Additional Paid-in Capital for $14,980,000.
d. debit Cash for $20,000, debit Capital Receivable for $14,980,000, credit Common Stock for $20,000 and credit Additional Paid-in Capital for $14,980,000.

Explanation / Answer

The answer is B Hope this helps

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