Which of the following journal entries does not reflect the initial cash sale of shares of common stock? A. Cash
$\quad$Common stock (no par)
B. Cash
$\quad$Common stock (par value)
$\quad$Capital in excess of par
C. Cash
$\quad$Common stock (stated value)
D. Cash
$\quad$Common stock (stated value)
$\quad$Gain on sale of stock
A) Option A
B) Option B
C)Option C
D)Option D

Question

Which of the following journal entries does not reflect the initial cash sale of shares of common stock? A. Cash 
$\quad$Common stock (no par)
B. Cash
$\quad$Common stock (par value) 
$\quad$Capital in excess of par
C. Cash
$\quad$Common stock (stated value)
D. Cash
$\quad$Common stock (stated value)
$\quad$Gain on sale of stock
A) Option A
B) Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

The gain on sale of stock is not recorded in the initial sale of common stock; it is recorded when stock is sold at a price above its par or stated value.

Which of the Following Journal Entries Does Not Reflect the Initial