Olsson Corporation received a check from its underwriters for $72 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $72 per share. Which is the correct entry to record the issue of the stock?
B) $\begin{array}{|l|r|r|} \hline \text { Cash } & 72,000,000 & \ \hline \text { Deferred stock issue revenue } & & 20,000,000 \ \hline \text { Common stock } & & 5,000,000 \ \hline \text { Paid-in capital\_excess of par } & & 47,000,000 \ \hline \end{array}$
C) $\begin{array}{|l|l|l|} \hline \text { Cash } & 72,000,000 & \ \hline \text { Common stock } & & 72,000,000 \ \hline \end{array}$
D) $\begin{array}{|l|r|r|} \hline \text { Cash } & 72,000,000 & \ \hline \text { Common stock } & & 5,000,000 \ \hline \text { Paid-in capital\_excess of par } & & 67,000,000 \ \hline \end{array}$

Question

Olsson Corporation received a check from its underwriters for $72 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $72 per share. Which is the correct entry to record the issue of the stock?
B) $\begin{array}{|l|r|r|} \hline \text { Cash } & 72,000,000 & \ \hline \text { Deferred stock issue revenue } & & 20,000,000 \ \hline \text { Common stock } & & 5,000,000 \ \hline \text { Paid-in capital\_excess of par } & & 47,000,000 \ \hline \end{array}$ 
C) $\begin{array}{|l|l|l|} \hline \text { Cash } & 72,000,000 & \ \hline \text { Common stock } & & 72,000,000 \ \hline \end{array}$ 
D) $\begin{array}{|l|r|r|} \hline \text { Cash } & 72,000,000 & \ \hline \text { Common stock } & & 5,000,000 \ \hline \text { Paid-in capital\_excess of par } & & 67,000,000 \ \hline \end{array}$

Quizplus · Accepted Answer

$\begin{array}{|l|r|r|}
\hline \text { Cash } & 72,000,000 & \
\hline \text { Common stock }(1,000,000 \times \$ 5 \text { par }) & & 5,000,000 \
\hline \text { Paid-in capital excess of par } & & 67,000,000 \
\hline
\end{array}$

Olsson Corporation Received a Check from Its Underwriters for $72