S & C Company Issues 1,800 Shares of Common Stock $$\begin{array} { l l } \text { Cash } & 3,600 \\\quad \text { Common Stock } && 3,600\end{array}$$

question 95

Multiple Choice

S & C Company issues 1,800 shares of common stock with a $2 par value. The issue price of the stock is $15 per share. What is the journal entry required to record the issuance of the shares?

• A) \[\begin{array} { l l }
• \text { Cash } & 3,600 \\
• \quad \text { Common Stock } && 3,600
• \end{array}\]
• B) \[\begin{array} { l r }
• \text { Cash } & 27,000 \\
• \quad \text { Common Stock - } \$ 2 \text { par } && 3,600 \\
• \text { Addl. Paid-in Capital in Excess of Par-Common } && 23,400
• \end{array}\]
• C) \[\begin{array} { l r }
• \text { Cash } & 27,000 \\
• \quad \text { Common Stock - } \$ 2 \text { par } && 1,800 \\
• \text { Addl. Paid-in Capital in Excess of Par-Common } && 25,200
• \end{array}\]
• D) \[\begin{array} { l l }
• \text { Cash } &27,000 \\
• \quad \text { Common Stock } && 27,000
• \end{array}\]

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