A company sold 10,000 shares of its own $1 par value common stock for $60,000.The entry to record the sale would include a
A) debit to treasury stock for $60,000.
B) debit to contributed capital for $10,000.
C) credit to common stock,$1 par value for $10,000..
D) credit to common stock,$1 par value for $60,000.

Question

Quizplus · Accepted Answer

The correct entry for issuing common stock involves crediting the common stock account at its par value, which in this case is $1 per share for 10,000 shares, totaling $10,000. The remainder of the proceeds above par value is credited to additional paid-in capital or a similar account, not listed among the options.

A Company Sold 10,000 Shares of Its Own $1 Par