The Bean Counter Corporation received subscriptions for 100 shares of its $10 par value common stock at $13 per share.The entry to record receipt of the subscriptions would include a:

Question

Quizplus · Accepted Answer

The correct entry for recording subscriptions received for common stock above par value involves recognizing the receivable for the subscription amount, recording the common stock at par value, and recognizing any excess over par as paid-in capital in excess of par. This is accurately reflected in option D, where the debit to Subscriptions Receivable-Common Stock represents the amount due from subscribers, and the credits to Common Stock Subscribed and Paid-in Capital in Excess of Par represent the allocation of the subscription amount to the par value of the stock and the excess over par, respectively.

The Bean Counter Corporation Received Subscriptions for 100 Shares of Its