Which of the following journal entries doesn't reflect the initial cash sale of shares of common stock?
A) Cash
$ \quad $$ \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

Question

Which of the following journal entries doesn't reflect the initial cash sale of shares of common stock?
A) Cash
$ \quad $$ \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

Quizplus · Accepted Answer

A gain on sale of stock is not recorded in the initial issuance of common stock; instead, any excess over par or stated value is recorded as additional paid-in capital.

Which of the Following Journal Entries Doesn't Reflect the Initial \quad

Which of the Following Journal Entries Doesn't Reflect the Initial $\quad$