Falcon Crest Corporation Issues 100 Shares of No-Par Common Stock

question 167

Multiple Choice

Falcon Crest Corporation issues 100 shares of no-par common stock for $10 per share. The stock has a stated value of $1 per share. This transaction will include a credit to Common Stock for:

• A)$100 and a Gain on Issue of Common Stock for $900.
• B)$100 and a credit to Retained Earnings for $900.
• C)$100 and a credit to Paid-in Capital in Excess of Stated Value for $900.
• D)$1,000 and no entry to Paid-in Capital.

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