What is the appropriate journal entry to record the sale of the 10,000 shares?

Name: What is the appropriate journal entry to record the sale of the 10,000 shares?
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The appropriate journal entry to record the sale of the 10,000 shares would be to debit Cash for the amount received ($400,000), credit Share Capital for the par value of the shares ($10,000), and credit Additional Paid-in Capital for the excess of the sale price over the par value ($390,000). Option C correctly reflects this entry.

What Is the Appropriate Journal Entry to Record the Sale