Which one of the following events would not require a journal entry on a corpora

Question

Which one of the following events would not require a journal entry on a corporation's book A company sells 1 million shares of common stock with a par value of $0.02 for $15 a shared transaction, the company would: Golden Eagle corporation issues 100 shares of $10 par value common stock for $50 per include a credit to common stock for: Double taxation means that the: Hillerbert company declared a 2-for-1 stock split on its 200, 000 shares of $10 par value of $12. As a result of this transaction:

Explanation / Answer

(7) C - 2-for-1 stock split

(8) D - Debit Cash for $15 million; Credit Common Stock for $20,000; Credit additional paid-in capital for $14,980,000

(9) Ideally, the entry should be - Credit Common Stock $1,000 and Additional Paid-in capital $4,000. However, since this is not an option, it should be C ( can be D as well if Additional paid-in capital has been called as paid-in capital in your course)

(10) C - Corporations pay tax on earnings and shareholders on dividends

(11) none of the answers are correct - In stock split, the number of shares doubles and the par value reduces by half, leaving the common stock and paid-in capital to be same

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