If Visser 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 a company issues common shares, the amount received is credited to the Common Shares account. In this case, 1,000 shares at $5 each results in $5,000 credited to Common Shares.