Yang organized a corporation called Minecraft Games Inc. The corporation was aut

Question

Yang organized a corporation called Minecraft Games Inc. The corporation was authorized to sell 100,000 shares of $2 par value common stock. On Nov 1, the company issued 10,000 shares of common stock at $10 per share for $100,000 cash. The journal entry to record the transaction would be:

A. Debit Cash $100,000; Credit Common Stock for $20,000 & credit Add'l Paid In Capital for $80,000

B. Debit Common Stock for $100,000; credit Cash for $100,000

C.Debit Cash $100,000; Credit Common Stock for $100,000

B. Debit Common Stock for $100,000; credit Cash for $100,000

C.Debit Cash $100,000; Credit Common Stock for $100,000

D. Debit Cash for $100,000; credit Common Stock for $10 and credit Add'l Paid In Capital for $190,000

Explanation / Answer

Answer is A

General Journal Debit Credit Cash(10,000 * $10) $100,000 Common Stock(10,000 * $2) $20,000 Add'l Paid In Capital $80,000

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