Lasik Vision, Inc. began business on June 1, 2014. The corporate charter authori
ID: 2459478 • Letter: L
Question
Lasik Vision, Inc. began business on June 1, 2014. The corporate charter authorized issuance of 1,000 shares of no-par common stock and 4,000 shares of $6 par, 6% cumulative preferred stock. As of the beginning of 2015, 200 shares of common stock had been issued and none of the preferred stock had been issued. If the company issues 400 shares of common stock on March 1, 2015 for $10 per share, the journal entry would include a a. $2,400 credit to common stock b. $4,000 credit to paid-in capital in excess par--common stock c. $2,400 credit to paid-in capital in excess of par--common stock d. $4,000 credit to common stock
Explanation / Answer
Answer:
(d) $4,000 credit to Common stock account.
It is so because the common stock with no par value stock always credits to the common stock account unless the stock is carried at stated value assigned by the the company.
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