When stock is issued for cash, only the par value of the stock should be reported in the stock account.

Name: When stock is issued for cash, only the par value of the stock should be reported in the stock account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When stock is issued for cash, the entire proceeds from the issuance should be recorded in the stock account, including both the par value and any additional amount received above par.

When Stock Is Issued for Cash, Only the Par Value