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Jarrett Company issued 900 shares of no-par common stock for $13,200. Which of t

ID: 2500628 • Letter: J

Question

Jarrett Company issued 900 shares of no-par common stock for $13,200. Which of the following journal entries would be made if the stock has no stated value?

Answer

Cash                                                                             13,200
                     Common Stock                                                                              13,200

Cash                                                                             13,200
                     Common Stock                                                                                   900
                     Paid-in Capital in Excess of Par                                                       8,200

Cash                                                                             13,200
                     Common Stock                                                                                   900
                     Paid-in Capital in Excess of Stated Value                                      12,300

Common Stock                                                            13,200
                     Cash                                                                                               13,200

Cash                                                                             13,200
                     Common Stock                                                                              13,200

Cash                                                                             13,200
                     Common Stock                                                                                   900
                     Paid-in Capital in Excess of Par                                                       8,200

Cash                                                                             13,200
                     Common Stock                                                                                   900
                     Paid-in Capital in Excess of Stated Value                                      12,300

Common Stock                                                            13,200
                     Cash                                                                                               13,200

Explanation / Answer

The correct answer is Option (A).

Cash                                                                             $13,200
          Common Stock No Par Value                                                                             $13,200

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