Which of the following journal entries is correct when common stock is initially issued for cash at a price in excess of the stock's stated value?

Question

Quizplus · Accepted Answer

When common stock is initially issued for cash at a price in excess of the stock's stated value, the amount in excess of the stated value is recorded in the additional paid-in capital account. Therefore, option B is the correct journal entry as it records the cash received for common stock and the excess amount in additional paid-in capital.

Which of the Following Journal Entries Is Correct When Common