A Company Sells 1 Million Shares of Stock with No

question 68

Multiple Choice

A company sells 1 million shares of stock with no par value for $15 a share.In recording the transaction,it would:

• A)debit Cash for $20,000 and credit Common Shares for $20,000.
• B)debit Cash for $15 million and credit Common Shares for $15 million.
• C)debit Cash for $15 million,credit Common Shares for $20,000 and credit Contributed surplus for $14,980,000.
• D)debit Cash for $20,000,debit Capital Receivable for $14,980,000,credit Common Shares for $20,000 and credit Contributed surplus for $14,980,000.