Which of the following journal entries is correct when common stock is sold for cash at a price greater than par value?
A) Cash
$ \quad $Common stock
$ \quad $Gain on sale of stock
B) Cash
Additional paid-in capital
$ \quad $Common Stock
C) Cash
$ \quad $Common Stock
D) Cash
$ \quad $Common stock
$ \quad $Additional paid-in capital

Question

Which of the following journal entries is correct when common stock is sold for cash at a price greater than par value?
A) Cash
$ \quad $Common stock
$ \quad $Gain on sale of stock
B) Cash
Additional paid-in capital 
$ \quad $Common Stock
C) Cash
$ \quad $Common Stock
D) Cash
$ \quad $Common stock
$ \quad $Additional paid-in capital

Quizplus · Accepted Answer

When common stock is sold above par value, cash is debited for the total amount received, common stock is credited for the par value, and additional paid-in capital is credited for the excess over par value.

Which of the Following Journal Entries Is Correct When Common \quad

Which of the Following Journal Entries Is Correct When Common $\quad$