Tyler Incorporated receives $150,000 from investors for issuing them shares of its common stock. Tyler Incorporated records this transaction with a:

Question

Quizplus · Accepted Answer

When a company issues shares of its common stock to investors, it receives cash in exchange. This transaction is recorded with a credit to Common Stock, which represents the par value or stated value of the shares issued. Therefore, the correct choice is C - Credit to Common Stock. The other choices are not relevant to this transaction.

Tyler Incorporated Receives $150,000 from Investors for Issuing Them Shares