A company issues 25,000 shares of its $25 par common stock for $27 per share. The entry to record this will include a debit to Cash for $675,000.

Name: A company issues 25,000 shares of its $25 par common stock for $27 per share. The entry to record this will include a debit to Cash for $675,000.
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Question

Quizplus · Accepted Answer

The total amount received by the company is calculated by multiplying the number of shares by the price per share: 25,000 x $27 = $675,000. Therefore, there will be a debit to Cash for $675,000.

A Company Issues 25,000 Shares of Its $25 Par Common