Homework SourseYang organized a corporation called Minecraft Games Inc The
Yang organized a corporation called Minecraft Games Inc. The corporation was authorized to sell 100,000 shares of $2 par value common stock. On Nov 1, the company issued 10,000 shares of common stock at $10 per share for $100,000 cash. The journal entry to record the transaction would be:
A. Debit Cash $100,000; Credit Common Stock for $20,000 & credit Add\'l Paid In Capital for $80,000
B. Debit Common Stock for $100,000; credit Cash for $100,000
C.Debit Cash $100,000; Credit Common Stock for $100,000
| B. Debit Common Stock for $100,000; credit Cash for $100,000 C.Debit Cash $100,000; Credit Common Stock for $100,000
|
Solution
Answer is A
| General Journal | Debit | Credit |
| Cash(10,000 * $10) | $100,000 | |
| Common Stock(10,000 * $2) | $20,000 | |
| Add\'l Paid In Capital | $80,000 |
