Pumpkin Corporation issued 6,000 shares of common stock on January 1, 2018. The

Question

Pumpkin Corporation issued 6,000 shares of common stock on January 1, 2018. The stock has no par value and was issued at $23.00 per share. The jounal entry for this transaction includes a O A. credit to Cash for $138,000, a debit to Paid-In Capital in Excess of Par- Common for $6,000, and a debit to Common Stock-No-Par Value for $132,000 O B. debit to Cash for $138,000 and a credit to Paid In Capital in Excess of Par Common for $138,000 C. D. debit to Cash for $138,000 and a credit to Common Stock-No-Par Value for $138,000 credit to Cash for $138,000 and a debit to Common Stock-No-Par Value for $138,000 Click to select your answer

Explanation / Answer

The correct option is C. Debit to cash and credit to Common stock- n o par value for $138,000.
Explanation:
here by issuing shares we are receiving cash i.e., what comes in is debit
cash account debited by $23*6,000 shares = $138,000 and Shares of no-par value are going out i.e., what goes out will be credited, Therefore credit by common stock-no par value with $138,000.

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