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astraxan [27]
4 years ago
9

Miller Corporation issued 7 comma 000 shares of its​ $5 par value common stock in payment for attorney services billed at $ 70 c

omma 000. Miller​ Corporation's stock has been actively trading at $ 10 per share. The journal entry for this transaction would include a credit​ to:
Business
1 answer:
Elina [12.6K]4 years ago
3 0

Answer:

credit to share capital account .

common stock capital : $35,000 Credit

share premium account: $35,000 credit

Explanation:

The share capital (capital accounts) are usually credit entries. The share is trading at a premium of $5 per unit , Issue of 7000 common stock will realise a total cash of $70,000 which is used to pay off attorney services. The common stock share capital will increase by 7000 x $5 = $35,000 and the balance premium ($35,000) will be to share premium account

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