Which of the following journal entries is correct when no-par common stock is initially issued for cash?
A) Cash
$ \quad $ Common stock
B) Cash
$ \quad $ Common stock
$ \quad $ Capital in excess of par
C) Cash
$ \quad $ Common stock
$ \quad $ Retained earnings
D) Cash
$ \quad $ Common stock
$ \quad $ Gain on sale of stock

Question

Which of the following journal entries is correct when no-par common stock is initially issued for cash?
A) Cash
$ \quad $ Common stock
B) Cash
$ \quad $ Common stock
$ \quad $ Capital in excess of par
C) Cash
$ \quad $ Common stock 
$ \quad $ Retained earnings
D) Cash
$ \quad $ Common stock 
$ \quad $ Gain on sale of stock

Quizplus · Accepted Answer

When no-par common stock is issued for cash, the entire amount received is credited to the common stock account, as there is no par value to allocate between common stock and additional paid-in capital.

Which of the Following Journal Entries Is Correct When No-Par \quad

Which of the Following Journal Entries Is Correct When No-Par $\quad$