2 pointsSave A was $54 per share. Which of the following the journal ent Questio

Question

2 pointsSave A was $54 per share. Which of the following the journal ent Question 44 Omicron Inc. issued 1 million shares of common stock with a par value of $2. The issue price properly records the transaction? O A debit Cash $54 million and credit Retained Earnings $54 million O B. debit Cash $54 million and credit Common Stock $54 millon C. debit Cash $54 million, credit Common Stock $2 million and credit Paid-in Capital in Excess of par value-Common $52 million O D.debit Cash $54 million, credit Paid-in Capital in Excess of Par-Common $54 million

Explanation / Answer

As per the above journal entry ,

Answer = Option C

Date Account Title and explanation Debit Credit Date Cash (1million Shares X $ 54 per shares) $ 54 Million          To Common Stock (1 million Shares X $ 2) $ 2 Million           To Excess of par Value - Common (1 million Shares X $ 52) $ 52 Million

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