Question

Apple Inc. issued 4 million shares of no-par common stock for $4 million. What journal entry is prepared?

A) debit Cash $4 million and credit Paid-in Capital in Excess of Par $4 million
B) debit Cash $4 million and credit Retained Earnings $4 million
C) debit Cash $4 million and credit Paid-in Capital in Excess of Stated Value $4 million
D) debit Cash $4 million and credit Common Stock $4 million

Answer 1

Answer: D) debit Cash $4 million and credit Common Stock $4 million

Step-by-step explanation:

Common stock is simply used by a company to raise money. The stockholders are typically paid dividends and.they can also vote in a meeting.

Since Apple Inc. issued 4 million shares of no-par common stock for $4 million, the journal entry that is prepared will be to debit Cash $4 million and credit Common Stock $4 million.