A company sells 1 million shares of stock with no par value for $15 a share.In recording the transaction,it would:
A)debit Cash for $20,000 and credit Common Shares for $20,000.
B)debit Cash for $15 million and credit Common Shares for $15 million.
C)debit Cash for $15 million,credit Common Shares for $20,000 and credit Contributed surplus for $14,980,000.
D)debit Cash for $20,000,debit Capital Receivable for $14,980,000,credit Common Shares for $20,000 and credit Contributed surplus for $14,980,000.

Question

Quizplus · Accepted Answer

The company sold 1 million shares for $15 each, so the total cash received was $15 million. The company would debit Cash for $15 million and credit Common Shares for $15 million to record the transaction.

A Company Sells 1 Million Shares of Stock with No