Question

Hayes Corporation issues 100 shares of its $1 par value common stock for $15 per share. The entry to record the issuance will not include a:a. Debit to Cash $1,500.b. Credit to Additional Paid-In Capital $1,400.c. Credit to Common Stock of $100.d. All of the other options would be included.

Answer 1

Answer:

D) All of the other options would be included.

Explanation:

The journal records should be as follows:

• Dr Cash account 1,500
• Cr Common Stock account 100
• Cr Capital Paid-in Excess of Par Value account 1,400

Stock is always recorded at par value (or book value) and any extra money received from the stocks has to be recorded as capital paid-in excess of par value.