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East Asian Imports, Inc. issued 15,000 shares of stock at a stated value of $8 per...

East Asian Imports, Inc. issued 15,000 shares of stock at a stated value of $8 per share. The total issue of stock sold for $15 per share. The journal entry to record this transaction would include a

a. debit to Cash for $120,000.

b. credit to Common Stock for $120,000.

c. credit to Paid-in Capital in Excess of Par for $125,000.

d. credit to Common Stock for $125,000.

(SHOW JOURNAL ENTRY)

Solutions

Expert Solution

Journal entry would be -

Cash A/c Dr.                                                             $ 225000

To common stock                                                                      $ 120000

To Paid in capital in excess of stated value a/c                        $ 105000

Option B is correct

ekkarill92 answered 10 months ago
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