Hawkeye Corporation Issues 100 Shares of No-Par Value Common Stock

question 101

Multiple Choice

Hawkeye Corporation issues 100 shares of no-par value common stock for $20 per share. This transaction will include a credit to Common Stock for:

• A)$1,000 and a Gain on Issue of Common Stock for $1,000.
• B)$1,000 and a credit to Retained Earnings for $1,000.
• C)$1,000 and a credit to Paid-in Capital for $1,000.
• D)$2,000 and no entry to Paid-in Capital in Excess of Par or Stated Value.