Question

Vanya Inc’s charter authorizes 1,000 shares of stock at a stated value of $1 par share. Vanya sells 50 shares of stock at its initial offering for $10 per share. The journal entry to record this transaction will include which of the following entries?

A. Credit to Common stock for $500
B. Debit to common stock for $100
C. Credit to cash for $500.
D. Credit to Common stock for $50.
E. Debit to Cash for $500.
F. Credit to Paid in Capital, in Excess of stated Value for $450

Answer 1

Step-by-step explanation:

Credit to Paid-In Capital, in Excess of Stated Value for $450Debit to Cash for $500Credit to Common Stock for $50