The entry to record this transaction includes a debit to cash for 14,980,000.
To report transactions, accounting gadget makes use of double-access accounting. Double-access means that transactions are always recorded the use of two sides, debit and credit score. Debit refers to the left-hand aspect and credit score refers back to the proper-hand side of the magazine access or account.
A debit is an entry made on the left facet of an account. It either will increase an asset or rate account or decreases fairness, liability, or revenue money owed (you'll study more about those money owed later). for instance, you debit the purchase of a brand new computer through coming into it on the left aspect of your asset account.
explanation;
Cash 1 million shares x $15 a share = 15,000,000
Common Stock 1 million shares x $0.02 par valu = 20,000
Additional Paid-in Capital (15,000,000 - 20,000)
= 14,980,000
Disclaimer :-your question is incomplete,please refer below for complete question.
Company issues 1 million shares of common stock with a par value of $0.02 for $15 a share. The entry to record this transaction includes a debit to Cash for:
A. $15,000,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000.
B. $15,000,000 and a credit to Common Stock for $15,000,000
C. $20,000 and a credit to Common Stock for $20,000.
D. $20,000, a debit to Capital Receivable for $14,980,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000.
Hence,the answer is option A .$15,000,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000.
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