Question

A corporation issued 80 shares of no par value common stock for $800 cash. Based on this information, the credit to the common stock account should be _____________.

Answer 1

Answer:

The correct answer to the following question should be $800.

Explanation:

As per the question, a corporation has issued 80 shares which have no par value, and the amount of cash that has been paid for the common stock is $800 cash. So the journal entry for this would be -

SN     Particular                LF            Debit            Credit

1        Cash                                       $800

       To Common stock                                           $800

         ( with no par value )

So the amount which would be credited to common stock would be $800