Jarrett Company issued 900 shares of no-par common stock for $13,200.Which of the following journal entries would 1.

Question

Quizplus · Accepted Answer

A) Debit Cash for $13,200 and credit Common Stock for $13,200.
This entry records the issuance of common stock at its par value. However, since the stock is no-par, the company can issue it for any price. In this case, the company issued the stock for $13,200, so Common Stock would be credited for the same amount and Cash would be debited.

Jarrett Company Issued 900 Shares of No-Par Common Stock for $13,200.Which