Question

Florida Travel Inc. issues 5,000 shares of $5 pa r value common stock for ). The journal entry to record this issuance would include:_______
A) a debit to Paid-in Capital in Excess of Par of $60,000
B) a credit to Paid-in Capital in Excess of Par of $60,000
C) a credit to Common Stock for $25,000 and a debit to cash for $85,000
D) A and C
E) B and C

Answer 1

Answer:

E) B and C

Explanation:

The missing word "Florida Travel Inc. issues 5,000 shares of $5 pa r value common stock for $85,000"

Date   Account Titles and Explanation      Debit         Credit

           Cash                                                 $85,000

                Common stock                                             $25,000

                 (5000 shares x $5)

                 Paid-in capital in excess of par                  $60,000