Apple Inc issued 6 million shares of nopar common stock for

Apple Inc. issued 6 million shares of no-par common stock for $6 million. What journal entry is prepared? O A. debit Cash $6 million and credit Common Stock $6 million. O B. debit Cash $6 million and credit Retained Earnings $6 million. OC. debit Cash $6 million and credit Paid-in Capital in Excess of Stated Value $6 million. debit Cash $6 million and credit Paid-in Capital in Excess of Par $6 millidn.

Solution

Answer is A. Debit Cash $ 6 Million and credit Common Stock $ 6 million.

Explanation:

When the shares are issued of no par category, then all the proceeds is credited to Common Stock capital-no par Account and the journal entry is as follows:

Cash Account Dr. $ 6 million

Common Stock Capital-No par Account $ 6 million