Bentley Corporation received cash from issuing 16,000 shares of common stock at

Question

Bentley Corporation received cash from issuing 16,000 shares of common stock at par on January 1, 2018. The stock has a par value of S0.02 per share. Which is the correct journal entry to record this transaction? ? A. Paid-In Capital in Excess of Par-Common is debited for $15,680, and Common Stock--$0.02 Par Value is credited for 0 B. Cash is credited for $16,000 and Common Stock-$0.02 Par Value is debited for $16,000. $15,680. ( Cash is debited for $16,000. Common Stock-S0.02 Par Value is credited for $320, and Paid-In Capital in Excess of Par Common credited for $15,680. Cash is debited for $320, and Common Stock-$0.02 Par Value is credited for $320. C. O D.

Explanation / Answer

The journal entry is:

Cash /c..Dr$320(16000 shares@$0.02per share)

To Common stock($0.02 par) $320.

Hence the correct option is D.

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