South Beach Apparel issued 10,000 shares of $1 par value stock for $5 per share. What is true about the journal entry to record the issuance?

A) Debit Common Stock $10,000.

B) Credit Cash $50,000.

C) Credit Common Stock $50,000.

D) Credit Additional Paid-In Capital $40,000.

Answer: D

When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:

A) A debit to Cash for $25,000.

B) A debit to Additional Paid-in Capital for $25,000.

C) A credit to Common Stock for $250,000.

D) A credit to Additional Paid-in Capital for $225,000.

Answer: D

When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:

A) A debit to Cash for $25,000.

B) A debit to Additional Paid-in Capital for $25,000.

C) A credit to Additional Paid-in Capital for $250,000.

D) A credit to Common Stock for $25,000.

Answer: D