A company sells 1 million shares of common stock with a par value of $0.02 for $

Question

A company sells 1 million shares of common stock with a par value of $0.02 for $15 a share. To record the transaction, the company 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 pod in capital for $14,980,000 A company sells 1 million shares of common stock with a par value of $0.02 for $15 a share. To record the transaction, the company 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 pod in capital for $14,980,000
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 pod in capital for $14,980,000

Explanation / Answer

C) debit cash for $15 million, credit common stock for $20,000, and credit additional paid-in capital for $14,980,000

Credit with common stock par value and credited premium received on common stock.

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