A corporation issues 1,500 shares of common stock for $32,000. The stock has a par value of $10 per share. The journal entry to record the stock issuance would include a credit (increase) to Common Stock for: Oa. $15,000 Ob.$32,000 Oc. $17,000 Od. $2,000 Question 3 of 10

A corporation issues 1,500 shares of common stock for $32,000. The stock has a par value of $10 per share. The journal entry to record the stock issuance would include a credit (increase) to Common Stock for: Oa. $15,000 Ob.$32,000 Oc. $17,000 Od. $2,000 Question 3 of 10

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

A corporation issues 1,500 shares of common stock for $32,000. The stock has a par value of $10 per share. The journal entry to record the stock issuance would include
a credit (increase) to Common Stock for:
Oa. $15,000
Ob. $32,000
Oc. $17,000
Od. $2,000
A Moving to the next question prevents changes to this answer,
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