The entry to record a subscription for 100 shares of common stock at par value would consist of a debit to Subscriptions Receivable-Common and a credit to Common Stock.

Question

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The correct entry would be a debit to Subscriptions Receivable-Common and a credit to Common Stock Subscribed, not directly to Common Stock, until the subscription is fully paid.

The Entry to Record a Subscription for 100 Shares of Common