Respuesta :
When a business issues 33,000 shares of common stock with a $3 par value for $30 each, the journal entry for this issuance would also include a $891,000 credit to additional paid-in capital. Option (d) is correct.
A credit entry reflects a value transfer from the account, whereas a debit entry represents a transfer of value to the account. Each transaction involves the movement of money from credited to debited accounts.
Debit is the negative side of a result item and the positive side of a balance sheet account. Debit is an entry in bookkeeping that shows the addition of an asset or expense or the reduction of a liability or revenue on the left side of a double-entry accounting system. A credit is the polar opposite of a debit.
Journal entry:
Cash:
Debit : 990000
Credit : (33000*30)
Common stock : (33000*30) = 99000 and increase to (33000*3)
Additional paid in capital:
Credit : 891000
Additional paid in capital : (33000*27) = 891000
Final amount = Credit : 891000
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Correct Question:
When a company issues 33,000 shares of $3 par value common stock for $30 per share, the journal entry for this issuance would include:
A. A credit to Common Stock for $990,000
B. A debit to Cash for $99,000
C. A debit to Additional Paid-in Capital for $99,000
D. A credit to Additional Paid-in Capital for $891,000
