If Lee Inc. issues 1,000 common shares for $ 5 per share,
A) Common Shares will be credited for $ 5,000.
B) Gain on Sale of Shares will be credited for $ 5,000.
C) Retained Earnings will be credited for $ 5,000.
D) The transaction will be recorded only in a note to the financial statements.

Question

Quizplus · Accepted Answer

When Lee Inc. issues common shares, the Common Shares account is credited for the total amount received, which is 1,000 shares x $5 per share = $5,000.