Osbourne Company Issued 50 000 Shares of Ordinary Shares in Exchange

Multiple Choice

Osbourne Company issued 50 000 shares of ordinary shares in exchange for manufacturing equipment. The equipment was valued at $1 000 000. The shares have a value of $18 per share. The entry to record this transaction would include which of the following line items?

A) Credit Ordinary share capital $1 000 000
B) Credit Gain on sale of ordinary shares $100 000
C) Debit Cash $100 000
D) Credit Ordinary share capital $900 000