Refer to the information above. If Amelia decided to purchase 20,000 shares of its common stock to be used for future stock option plans at $11.40 per share, what journal entry would they make?

Question

Quizplus · Accepted Answer

The journal entry to purchase the 20,000 shares of common stock at $11.40 per share would be:
Dr. Common Stock $228,000
Cr. Cash $228,000 
This journal entry is represented in Option C. Option A and Option B do not involve purchasing shares of the company's common stock, and Option D incorrectly lists the debit and credit accounts.

Refer to the Information Above