A company sells 1 million shares of common stock with no par value for $15 a share.In recording the transaction,it would debit:
A)Cash and credit Additional Paid-in Capital for $15 million.
B)Cash and credit Common Stock for $15 million.
C)Common Stock and credit Cash for $15 million.
D)Common Stock and credit Additional Paid-in Capital for $15 million.

Question

Quizplus · Accepted Answer

Since the common stock does not have a par or stated value,the entry includes a debit to Cash and a credit to Common Stock for $15 million (or 1 million shares × issue price of $15.00 per share).

A Company Sells 1 Million Shares of Common Stock with No