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31 January, 23:29

Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for

a. $15,000

b. $3,000

c. $30,000

d. $45,000

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  1. 31 January, 23:56
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    c. $30,000

    Explanation:

    The journal entry to record the issuance of common stock is shown below:

    Cash A/c Dr $45000 ($3,000 * $15)

    To Common Stock $30,000 ($3,000 * $10)

    To Additional Paid-in Capital in excess of par - Common Stock $15,000

    (Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

    While issuing the stock, we debited the cash account and credited the common stock and additional paid-in capital account
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