In January, 2009, Despot recorded a transaction with this journal entry: The transaction was for the:
A)Issue of 2 million shares of common stock at par value
B)Issue of common stock for $150 million in cash
C)Receipt of $20 per share for a new stock issue
D)All of these are correct.

Question

Quizplus · Accepted Answer

The journal entry specifies that common stock was issued for $150 million in cash, which corresponds to option B. Option A mentions issuing shares at par value, which is not specified in the journal entry. Option C mentions receiving $20 per share for a new stock issue, which is also not specified in the journal entry. Therefore, B is the best choice.

In January, 2009, Despot Recorded a Transaction with This Journal