Nature's Honey Corporation received the final installment of $1,000 on a stock subscription for 20 shares of $100 par value common stock.After recording the cash receipt,the entry to issue the stock would include a:

Question

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When the final installment of $1,000 is received for a subscription of 20 shares of $100 par value common stock, the total amount received is $2,000 (20 shares x $100 par value = $2,000).

The entry to issue the stock would include a credit to Common Stock for $2,000, representing the par value of the stock issued. The stockholders' equity section of the balance sheet would now include an increase in the Common Stock account for $2,000.

There is no excess of par value paid in, so options A and B do not apply. Option D is incorrect since it refers to Organization Cost, which is not relevant in this situation.

Nature's Honey Corporation Received the Final Installment of $1,000 on a Stock