Which of the Following Journal Entries Is Correct When Common $\quad$

question 7

Multiple Choice

Which of the following journal entries is correct when common stock is initially issued for cash at a price in excess of the stock's stated value?

• A) Cash
• \( \quad \) Common stock
• B) Cash
• \( \quad \) Common stock
• \( \quad \) Capital in excess of par
• C) Cash
• \( \quad \) Common stock
• \( \quad \)Retained earnings
• D) Cash
• \( \quad \) Common stock
• \( \quad \) Gain on sale of stock