Question

Florida Travel Inc. issues 5,000 shares of $5 pa r value common stock for ). The journal entry to record this issuance would include:_______

A) a debit to Paid-in Capital in Excess of Par of $60,000
B) a credit to Paid-in Capital in Excess of Par of $60,000
C) a credit to Common Stock for $25,000 and a debit to cash for $85,000
D) A and C
E) B and C

Answer 1

E) B and C

Step-by-step explanation:

The missing word "Florida Travel Inc. issues 5,000 shares of $5 pa r value common stock for $85,000"

Date Account Titles and Explanation Debit Credit

Cash $85,000

Common stock $25,000

(5000 shares x $5)

Paid-in capital in excess of par $60,000